MUMBAI: Gold and silver surged to fresh record highs on Wednesday, buoyed by a sharp slide in the US dollar to a four-year low. February gold futures on the MCX jumped 3.47%, or ₹5,471 per 10 grams, to ₹1,63,170. Silver futures for June delivery staged an even stronger rally, soaring over 10% to breach the ₹4 lakh mark for the first time, settling at ₹4,11,451 per kg.
The momentum was mirrored in global markets, where safe-haven demand pushed gold up 3.6% to $5,270 per ounce, while silver surged 9.3% to $115.50 per ounce on the CME as of 1300 hours.
Silver futures with March expiry jumped nearly 6.5% to hit a fresh lifetime high of Rs 3,79,400/kg on Wednesday on the MCX while its May and July expiries rose to new all-time highs of Rs 3,95,000 and Rs 4,11,451 per kg, respectively.
The dollar plunge was due to the increasing trade war concerns and the continuing geopolitical tension and ahead of the US Fed policy decision later this today wherein it is widely expected to hold the rates steady. The dollar index is trading down at 96.14.
While gold in dollar terms has risen more than 20% this month, on the back of an 81% rally in 2025 silver is up more than 60% in dollar terms after rising threefold in the previous year. The white metal had climbed to a record of $117.69/0z on Monday.
The dollar crash came after US president Donald Trump remark that there is a broad-based consensus within the White House to have a weaker greenback going forward.
The dollar is grappling with a “crisis of confidence” as it struggled near four-year lows, exacerbating dollar selling, after Trump said the currency’s value is “great” when asked whether he thought it had declined too much.
The current rally has many analysts upping their gold target for the year. Deutsche Bank said sees gold climbing to $6,000 per ounce this year, citing persistent investment demand as central banks and investors increase allocations to non-dollar and tangible assets.
Meanwhile the silver rally has pushed its ETFs to new high rising by over 6.5% Wednesday, mirroring the sharp the sharp surge in silver prices and hit fresh lifetime highs on January 28.
Aditya Birla Sun Life’s silver ETF jumped nearly 6% to hit a fresh lifetime high of Rs 352 apiece while Motilal Oswal, ICICI Prudential, Axis, Nippon and Groww meanwhile gained more than 5% each to their respective highs. Mirae Asset, SBI, Zerodha, DSP and a few others gained nearly 5%, while UTI, HDFC, 360 One, Tata and Edelweiss gained more than 4% each.