Silver skyrockets Rs 8,500 to hit record Rs 1.71 lakh/kg in Delhi

New Delhi, Oct 10: Silver prices saw the steepest single-day surge in the recent past and skyrocketed Rs 8,500 to hit a new record of Rs 1,71,500 per kilogram in the national capital on Friday, buoyed by persistent safe-haven inflows and severe supply constraints in global markets.

According to the All India Sarafa Association, the white metal closed at Rs 1,63,000 per kilogram on Thursday. Silver prices soared by Rs 17,500 per kg in the past three consecutive sessions.

Meanwhile, gold prices retreated from their record highs. The yellow metal of 99.9 per cent and 99.5 per cent purity fell by Rs 600 each to Rs 1,26,000 and Rs 1,25,400 per 10 grams (inclusive of all taxes), respectively, on Friday. On Thursday, the precious metal of both categories had closed at record levels of Rs 1,26,600 and Rs 1,26,000 per 10 grams.

"Gold and silver have re-asserted their ascendancy following Thursday's hiatus, propelled by a waning dollar and pervasive risk-aversion. Globally, the prospect of a Federal Reserve rate taper has materially attenuated US Treasury yields, consequently dulling the dollar's allure. "This, coupled with the inherent flight-to-safety dynamic, central bank & investment buying, have been a potent catalyst for bullion," Dilip Parmar, Research Analyst, HDFC Securities, said.