Silver: Strong international signals and growing anticipation of interest rate reduction drove silver prices to new all-time highs on Wednesday.

Silver prices extended their recent breakout gain on the Multi Commodity Exchange (MCX), rising more than 4% in early trading.

After reaching a record high, MCX silver was up 3.38 percent at Rs 2,04,445 per kg during early trading.

In contrast, there was some weakening in the price of gold. MCX gold fell 0.21 percent to Rs 1,34,129 per 10 grams for delivery in February.

According to analysts, “a sustained breakout above Rs 1,35,500, supported by renewed USD/INR strength, would strengthen bullish momentum and open the next expansion zone at Rs 1,36,000–Rs 1,38,000.”

As long as prices stay above the Rs 1,33,000–Rs 1,32,600 support zone, the overall bullish structure will remain intact, according to analysts.

Silver had a robust surge on the global market as well. For the first time ever, spot silver surpassed the $65 level, rising 2.8% to a new high of $65.63 per ounce.

By 02:30 GMT, spot gold was trading little higher at $4,321.56 an ounce, mostly due to a declining US dollar.

Silver prices spiked after the Federal Reserve’s anticipated interest rate reduction were reinforced by poor US labor market statistics.

The US unemployment rate increased to 4.6% in November, according to data, indicating a slowdown in the labor market.

Particularly when the central bank indicated a dovish posture after its last quarter-point rate decrease of the year, this has raised demand for non-yielding assets like precious metals.

The purchasing impetus was further bolstered by geopolitical worries. In response to allegations of growing military action in the area, US President Donald Trump escalated pressure on President Nicolas Maduro by ordering a blockade of all sanctioned oil vessels entering and departing Venezuela. Silver prices were further supported by the development, which increased desire for safe havens.