Silver futures jump as Fed pause sparks global rally

Silver prices surged sharply in domestic futures trade on Thursday, tracking firm global cues after the US Federal Reserve maintained its benchmark interest rates unchanged for the third consecutive meeting. The rally reflects renewed investor interest in precious metals amid expectations of prolonged higher rates and persistent inflation risks.

 On the MCX, silver for May delivery jumped ₹7,100, or 3.04%, to ₹2,40,300 per kg, with a turnover of 509 lots. The July contract also rose ₹5,488, or 2.3%, to ₹2,43,742 per kg in 7,635 lots, indicating strong participation across near- and far-month contracts. 

 Globally, silver prices strengthened as the Fed’s decision to hold rates steady supported bullion demand.  In New York, Comex silver futures for June climbed $1.79, or 2.49%, to $73.88 per ounce. Market participants interpreted the Fed’s move as a “hawkish pause”, suggesting policymakers remain focused on controlling inflation despite signs of moderation.

 Analysts noted that elevated energy prices and lingering geopolitical risks could keep inflationary pressures intact, supporting safe-haven assets like silver.  

The central bank’s stance indicates continued caution, with limited room for rate cuts in the near term.  Meanwhile, Jerome Powell signalled continuity in leadership, stating he would step down as chair at the end of his term but continue as a governor.

 Overall, the surge in silver prices highlights strong global momentum, with domestic markets closely tracking international trends.                         

 —PTI