Silver prices continued their climb in the Indian commodity markets on Wednesday, in line with global markets amid rising coronavirus cases and ongoing tensions between US and China.
Silver futures in the domestic market too gained 5.47% or 3,138 to trade at Rs 60,480 per kg today, after touching an intra day high of Rs 61,280 today.
Spot silver futures in global markets climbed as much as 7.2% to $22.8366 an ounce, the highest since 2013.
Silver prices in the commodity market have been scaling fresh highs as traders shunned risk and sought a safe haven during times of economic fallout from the virus. Rebound in industrial demand for silver to be used for manufacturing of products ranging from solar panels to electronics has also led to the rise in prices in the international commodity markets.
Acute supply concerns, that remain high amid virus outbreak in Mexico and Latin America have also caused silver price to gain more momentum than the yellow bullion metal.
When compared to gold, silver prices climbed over Rs 8,500 per kg to today’s high, while gold continued posting marginal gains in recent trades to hit the Rs 50,000 per 10 gram mark for the first time today.
Concerns over the economic impact of rising coronavirus infections in many countries, especially in the two largest economies-US and China have driven investment inflows into safe-haven assets such as industrial metals. Hopes of more government spending around the globe through major central banks have caused surge in demand for precious metals in recent times.
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