Silver hits fresh record high globally; India prices cross ₹2 lakh per kg

Silver prices surged to a new all-time high of $62.50 an ounce in global trade on Thursday (December 11), extending this year’s rapid advance as expectations of looser US monetary policy continued to weaken the dollar and Treasury yields.

In India, domestic silver prices crossed ₹2 lakh per kg, with the metal quoted at ₹201 per gram, mirroring the strength in international markets and firm industrial demand.

The latest rise follows a pivotal week in global macro signals.

The US Federal Reserve’s December policy move—its first rate cut in months—combined with Chair Jerome Powell’s unexpectedly measured outlook, triggered a broad reassessment of interest-rate expectations.

The response was immediate: the dollar weakened, yields eased and commodities, particularly precious metals, caught a strong bid.

Markets respond to Fed’s tone shift

The dollar index slipped to its lowest level in nearly two months, hovering around 98.58, as traders recalibrated their expectations of US growth and future rate decisions. Lower yields also amplified investor appetite for alternatives to dollar-denominated assets, giving silver an added push.

Risk assets gained as well, with Wall Street staging a rebound that spilled over into Asian trading.

Fed outlook fuels haven demand

According to Ross Maxwell, Global Strategy Operations Lead at VT Markets, the Fed’s December

rate cut marks a “measured shift” toward easing, though policymakers remain cautious.

He noted that while inflation pressures may moderate in the absence of new tariffs, labour-market distortions and data gaps—partly due to the recent US government shutdown—are complicating the Fed’s economic assessment.

Maxwell added that AI-driven productivity shifts could be contributing to uneven sectoral performance, potentially shaping a K-shaped economic environment, where some industries strengthen while others weaken.

Why silver is outperforming?

Silver is benefitting from both safe-haven buying and robust industrial demand, particularly from sectors linked to green energy, electronics, and photovoltaics. The combination of a softer dollar and expectations of lower borrowing costs has amplified flows into precious metals.

“A softer USD, combined with lower interest rates, supports gold and silver by reducing the opportunity cost of holding non-yielding assets,” Maxwell said.

Silver’s dual nature—part investment asset, part industrial metal—adds to its volatility but also provides higher upside potential when macroeconomic conditions align.

What comes next?

While the Fed’s tilt and weaker dollar have buoyed global markets, analysts caution that uncertainty over the US economic trajectory, productivity trends, and policy room for further easing could continue to weigh on sentiment.

Emerging markets, including India, may see periods of relief due to the softer dollar, but volatility is expected as investors reassess growth and yield expectations.

-With Reuters inputs