Silver rate today: Prices soar Rs 8,500 to Rs 1.71 lakh/kg in Delhi; tight global supply fuels rally

Silver rate today: Silver prices surged sharply in Delhi on Friday, jumping Rs 8,500 to close at a record Rs 1,71,500 per kilogram, driven by robust safe-haven demand and ongoing supply constraints in global markets.The All India Sarafa Association reported that silver had closed at Rs 1,63,000 per kilogram on Thursday. Over the past three sessions, the white metal has gained Rs 17,500 per kilogram, marking one of the steepest rallies in recent months, PTI reported.Gold prices, in contrast, eased from record highs. The yellow metal of 99.9 per cent and 99.5 per cent purity fell Rs 600 each to Rs 1,26,000 and Rs 1,25,400 per 10 grams, inclusive of all taxes. On Thursday, gold had touched 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 brief pause, propelled by a weakening dollar and widespread risk-aversion. Globally, the prospect of a Federal Reserve rate taper has lowered US Treasury yields, reducing the dollar’s appeal. Combined with flight-to-safety demand, central bank, and investment buying, this has been a strong catalyst for bullion,” said Dilip Parmar, Research Analyst, HDFC Securities.Manav Modi, Analyst – Precious Metal Research at Motilal Oswal Financial Services, noted, “Silver has entered steep backwardation, indicating acute supply tightness unmatched by rising demand. In the domestic market, premiums have surged, boosting volatility and creating a gap between silver ETF, futures, and exchange-traded contracts.”In global markets, spot gold gained $16.61, or 0.42 per cent, to $3,992.80 per ounce, while spot silver rose 1.52 per cent to $50.01 per ounce. The white metal had crossed $51 per ounce for the first time internationally on Thursday.Analysts pointed to dovish signals from the Federal Open Market Committee (FOMC) September minutes, indicating growing consensus for two additional rate cuts this year amid signs of a weakening US labour market, as a key factor supporting metals.“The ongoing US government shutdown, now in its second week, has added volatility by delaying key data releases. Geopolitical tensions, steady inflows into ETFs, and central bank purchases continue to provide long-term support for bullion,” an expert said.The US-based Silver Institute recently projected a fifth consecutive annual supply deficit for 2025, highlighting structural tightness in the global market. Analysts said a combination of potential Fed rate cuts, fiscal uncertainty in the US, and persistent supply shortages could sustain silver’s bullish momentum unless global risk sentiment stabilises significantly.