Mumbai: The local prices of both precious metals broke above record high levels on Wednesday, continuing the unrelenting surge in gold and silver prices. Completely Silver prices were over Rs 3.7 lakh/kg, while gas gold prices were around Rs 1.7 lakh/10gm in the local bullion markets. Additionally, silver futures contracts for March delivery reached a new all-time high of Rs 3.87 lakh on the MCX, while gold futures contracts for February delivery reached an all-time high of Rs 1.65 lakh.
Due to the dollar’s weakness in early trades, the two precious metals saw an increase in international pricing. In recent trading, US President Donald Trump’s social media tweet claiming that a sizable US navy force was on route to West Asia to intimidate Iran into entering the nuclear disarmament negotiations table significantly increased the prices of these two metals.
Silver prices were trading at $113/oz, while gold prices had surpassed $5,300/oz in recent sessions. Both were trading just below their peak values. The sudden increase in the prices of the two precious metals was attributed by market participants to geopolitical worries and the weakening of the dollar. The additional factors driving silver prices were rising demand from rapidly expanding industries including solar, semiconductors, EVs, and smart grids.
FAQ: Record High Gold and Silver Prices in Mumbai
1. What are the current local prices of gold and silver in Mumbai?
As of Wednesday, gold prices in Mumbai are around Rs 1.7 lakh per 10 grams.
Silver prices have surged to over Rs 3.7 lakh per kilogram in local bullion markets.
2. Have futures contracts for gold and silver reached record levels?
Yes. On the MCX (Multi Commodity Exchange):
Silver futures for March delivery hit a new all-time high of Rs 3.87 lakh/kg.
Gold futures for February delivery reached an all-time high of Rs 1.65 lakh/10gm.
3. What factors contributed to the surge in gold and silver prices?
Weakening of the US dollar in early trades.
Geopolitical tensions, particularly a recent tweet by US President Donald Trump about sending a sizable US naval force to West Asia to pressure Iran.
Rising industrial demand, especially for silver, from sectors like solar energy, semiconductors, electric vehicles (EVs), and smart grids.
4. How are international prices of gold and silver performing?
Silver was trading at $113/oz, while gold surpassed $5,300/oz in recent sessions.
Both metals were trading just below their peak international values.
5. Why is silver seeing additional demand compared to gold?
Silver has significant industrial usage. Growing demand from clean energy technologies and electronics is driving prices higher.
6. Should investors be concerned about this price surge?
Price surges are influenced by geopolitical uncertainty and currency fluctuations.
Investors often view gold and silver as safe-haven assets, especially during periods of market volatility.
7. What is the impact of these price levels on local consumers and traders?
Jewellery makers and industrial buyers may face higher procurement costs.
Investors may see an opportunity for profit if prices stabilize or continue to rise.
8. How do geopolitical events influence gold and silver prices?
Precious metals like gold and silver are considered safe-haven assets.
When there is geopolitical tension or conflict, investors flock to these metals, pushing prices higher.
For example, the recent US-Iran situation caused a sharp spike in both gold and silver prices.
9. How does the weakening of the US dollar affect these metals?
Gold and silver are priced internationally in US dollars.
A weaker dollar makes them cheaper for buyers using other currencies, which increases demand and pushes prices up.
10. What role does industrial demand play in silver prices?
Silver is heavily used in electronics, solar panels, EV batteries, and smart grids.
Rapid growth in these industries globally has added upward pressure on silver prices, in addition to investment demand.
11. Are these price levels sustainable in the long term?
Prices are influenced by global economic factors, currency fluctuations, industrial demand, and investor sentiment.
While short-term spikes may occur due to geopolitical events, long-term stability depends on global economic recovery and industrial demand trends.
12. Can retail investors benefit from this surge?
Retail investors can invest in gold and silver via physical bullion, ETFs, or digital gold platforms.
Timing is important; buying at peak levels can be risky, while long-term investors may benefit from diversification and safe-haven protection.
13. How do futures contracts impact local bullion prices?
Futures contracts reflect market expectations for future prices.
When futures hit all-time highs, it can create momentum in spot markets, pushing local prices higher.
14. Are there any risks associated with investing in precious metals now?
Prices can be volatile, especially during geopolitical tensions or dollar fluctuations.
Industrial demand or policy changes can affect silver prices significantly.
Investors should consider long-term vs short-term strategies and market conditions before investing.
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