Silver Futures Climb to ₹2.38 Lakh per Kilogram Following US Treasury Liquidity Announcement

Silver prices in futures trade rose by ₹2,163 to reach ₹2.38 lakh per kilogram on Thursday. The upward movement tracked firm global trends after a surprise liquidity-support announcement from the US Treasury pushed both bond yields and the greenback lower.

On the Multi Commodity Exchange (MCX), the white metal for September delivery climbed by ₹2,163, representing an increase of nearly 1 per cent. The contract reached ₹2,38,950 per 10 grams, recording a total business turnover of 10,383 lots.

Market analysts noted that softer US Treasury yields and a weaker dollar improved the investment appeal of precious metals. In international markets, Comex silver futures for September delivery traded 1.58 per cent higher at $66.86 per ounce in New York.

Renisha Chainani, Chief Research Officer at Augmont, commented on the market movement, stating that silver rose to its highest levels in more than two and a half months following the surprise liquidity-support announcement from the US Treasury, which knocked down bond yields and the dollar.

The US government announced plans to at least double the size of its liquidity-support buyback operations, covering securities with maturities ranging from 10 to 30 years.

Meanwhile, minutes released on Wednesday from the US Federal Reserve's latest policy meeting indicated deepening concern over inflation. Several policymakers expressed readiness to raise interest rates, while many noted that borrowing costs would need to increase if inflation fails to decline toward the central bank's 2 per cent target.

"Macroeconomic shifts, particularly decisions by central banks and treasury departments regarding liquidity and interest rates, have an immediate impact on commodity markets. The recent movement in silver futures highlights how global monetary policies and currency fluctuations directly influence precious metal valuations and investor sentiment across domestic exchanges like the MCX." — Dr. Shishir Gupta, Founder & CEO, StartupLanes