Silver at new high on global cues, domestic demand

Taking firm cues from global markets, silver futures continued its record setting spree with prices rising by a whopping Rs 1,023 to Rs 45,700 per kg, a level seen before, as speculators engaged in building up huge positions.

Further, rising demand on the domestic markets, driven by the ongoing marriage season also supported the current run-up in the silver futures prices.

At the Multi Commodity Exchange counter, silver for delivery in May contract climbed by Rs 1,023, or 1.25 per cent to Rs 45,700 per kg, an all-time high, with a turnover of just one lot.

The silver for delivery in March contract also shot up by Rs 638, or 1.25 per cent to hit yet another high of Rs 45,191 per kg, recording a turnover of one lot.

Globally, silver in the Asian region, gained 0.2 per cent, to trade at $30.2175, the highest since 1980.

Analysts said expectations that the Federal Reserve would inject more funds to boost the US and European economies, enhanced the appeal of precious metals as an alternative to currencies, supported the upside in silver futures prices here.

They said firming trend at the domestic market where silver prices climbed to trade over Rs 45,000 per kg level on the back of ongoing marriage season also buoyed the sentiment.