Silver Surge: Market Unrest and USD 80 Milestone

Silver prices soared by Rs 4,357 to reach Rs 2.45 lakh per kg in futures trading on Friday, driven largely by escalating tensions between the US and Iran. The metal for March delivery saw a 1.8 percent hike, trading at Rs 2,45,750 on the Multi Commodity Exchange, with a substantial turnover of 5,975 lots.

This marks the third consecutive day of gains for Comex silver futures, climbing by USD 1.23, or 1.6 percent, to USD 78.87 per ounce. Analysts attribute this upward trajectory to increased geopolitical concerns along with the Federal Reserve's uncertain policy outlook.

According to Jigar Trivedi, Senior Research Analyst at IndusInd Securities, President Trump's deadline ultimatum has intensified US-Iran friction while the Fed's internal debates over interest rate strategies signal potential delays in rate cuts. Amid muted Asian demand due to the Lunar New Year, all eyes are now on upcoming US PCE price index data for insights into future monetary policy trends.