The prices of precious metals, particularly silver, witnessed a dramatic surge on Monday, January 2, as escalating geopolitical tensions between the United States and Venezuela sent shockwaves through global financial markets. The news of US military action in Venezuela and the reported arrest order for President Nicolas Maduro by former US President Donald Trump triggered a massive flight to safe-haven assets.
Market Reaction: A Meteoric Rise
In India, the rally was sharply reflected in the commodities market. The MCX silver futures contract for March delivery jumped by over 3%, gaining approximately ₹13,500, to trade at a high of ₹2,49,900 per kilogram. This significant intraday movement underscored the immediate impact of international events on domestic prices.
The momentum was even more pronounced on the global stage. The spot silver price in international markets soared to an intraday peak of $75.968 per ounce. This represented a staggering gain of nearly 6% from its previous closing level, highlighting the intense investor sentiment driving the rally.
Silver Rate Today Across Major Indian Cities
The bullish trend permeated the physical retail market across India. According to the latest data from bullions.co.in, here is a snapshot of silver prices in key cities as of 10 am on January 2:
- Delhi: ₹2,425 (10 gm), ₹24,253 (100 gm), ₹2,42,530 (1 kg bar)
- Mumbai: ₹2,430 (10 gm), ₹24,308 (100 gm), ₹2,43,080 (1 kg)
- Chennai: ₹2,437 (10 gm), ₹24,379 (100 gm), ₹2,43,790 (1 kg)
- Kolkata: ₹2,427 (10 gm), ₹24,276 (100 gm), ₹2,42,760 (1 kg)
- Bengaluru: ₹2,432 (10 gm), ₹24,328 (100 gm), ₹2,43,280 (1 kg)
- Hyderabad: ₹2,434 (10 gm), ₹24,347 (100 gm), ₹243,470 (1 kg)
- Jaipur: ₹2,431 (10 gm), ₹24,315 (100 gm), ₹2,43,150 (1 kg)
- Pune: ₹2,428 (10 gm), ₹24,283 (100 gm), ₹2,42,830 (1 kg)
- Rajkot: ₹2,434 (10 gm), ₹24,341 (100 gm), ₹2,43,410 (1 kg)
- Nashik: ₹2,430 (10 gm), ₹24,308 (100 gm), ₹2,43,080 (1 kg)
Drivers Behind the Silver Surge
Analysts point to a confluence of factors fueling the sharp uptick in silver rates. The primary catalyst is the renewed geopolitical risk stemming from the US-Venezuela conflict, which prompts investors to seek refuge in tangible assets like silver and gold. Additionally, market participants are closely awaiting key macroeconomic data releases from the United States, which could influence the Federal Reserve's policy stance and, consequently, metal prices.
This rally continues an impressive bull run for the white metal. It is noteworthy that silver prices surged by nearly 150% in the previous year. This long-term strength is attributed to persistent supply constraints, robust demand from both industrial sectors and investors, and a generally supportive macroeconomic environment.
Disclaimer: This article is for informational purposes only. The views and recommendations mentioned are those of individual analysts or broking firms. Readers are strongly advised to consult with certified investment experts before making any financial decisions.
