After 10 days of slumping, Silver prices surged on Wednesday by ₹12,861 to around ₹2.36 lakh per kg in futures trading. The surge came as the US dollar weakened and concerns over inflation were eased due to drop in prices of crude oil. Silver prices saw a rise in the global market too, with May futures climbing $3.87 (about 5.6%) to $73.44 per ounce. (Representational Photo/Reuters)
On the Multi Commodity Exchange, Silver soared by ₹12,861, nearly six per cent, to ₹2,36,802 for May delivery.
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What caused the surge in Silver prices? Analysts attributed the rebound to strong positive sentiment in global precious metals markets and a weaker US dollar, reported the news agency PTI.
"Silver's sharp rebound on Wednesday were driven by a softer US dollar and easing inflation concerns as crude oil prices corrected," PTI quoted Hareesh V, Head of Commodity Research, Geojit Investments Ltd, as saying.
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He added that what also supported the white metal was the fall in energy prices which helped ease concerns over higher global interest rates.
Hareesh also said that another reason behind the surge in Silver prices is also value buying of the metal after recent fall in the prices which attracted fresh demand alongside short covering, the report said.
Silver prices saw a rise in the global market too, with May futures climbing $3.87 (about 5.6%) to $73.44 per ounce.
This hike of over 3 per cent globally came amid the weakening of the US dollar as the United States is calling for a month-long ceasefire in its ongoing conflict with Iran to facilitate negotiations, said Aamir Makda, Commodity & Currency Analyst at Choice Broking.
According to Hareesh, while supportive geopolitics could underpin sentiment, “a firm US dollar is likely to cap strong upside, keeping price movements relatively restrained for now.”