Silver Prices Skyrocket in Ahmedabad Market
Silver prices experienced a dramatic surge in Ahmedabad on Friday. Bullion traders reported a sharp spike of Rs 18,000 per kilogram in just one trading session. The price climbed to Rs 2.80 lakh per kg from Tuesday's closing rate of Rs 2.66 lakh per kg.
This jump represents one of the steepest single-day gains observed in recent weeks. The market activity highlighted significant volatility in precious metals.
Gold Reaches Fresh High Amid Safe-Haven Rush
Gold prices also scaled a new peak in the Ahmedabad market. The precious metal reached Rs 1.46 lakh per 10 grams, up from Rs 1.44 lakh per 10 grams in the previous trading session.
Investors flocked to gold as a safe-haven asset. This movement occurred against a backdrop of intensifying global uncertainty, which prompted many to seek security in traditional stores of value.
Geopolitical Tensions Fuel Investment Demand
Analysts pointed to geopolitical tensions as the primary driver behind this rally. These tensions have increased risk aversion across global financial markets, pushing capital toward precious metals.
Haresh Acharya, director of the India Bullion and Jewellers Association, explained the current dynamics. "Precious metals are benefiting from heightened geopolitical concerns, which are driving investment demand," he said.
Acharya noted a contrasting trend in physical demand. "Physical demand for jewellery remains weak despite the ongoing wedding season. Consumers are either postponing purchases, restricting volumes, or exchanging old gold for new purchases, which has kept jewellery demand muted," he added.
Market Dynamics and Future Outlook
Bullion dealers confirmed that the current rally is largely investment-driven. Domestic prices in Ahmedabad are closely reflecting movements in global markets and currency fluctuations.
The situation underscores how international events can directly impact local commodity markets. Traders and investors in Ahmedabad are closely monitoring these developments as they navigate the volatile precious metals landscape.
