silver prices remained in the limelight followed by feeble US economic numbers, which fuelled hopes that the US Federal Reserve would cut interest rates this year.
In the key domestic futures market, prices were placed well above Rs 90,000 a kg level while it crossed the key $30-level mark in the overseas market last week.
A cooling labour market and softer retail sales suggest weak economic activity in the US. This has prompted investors to bet on bullion on expectations of a likely cut in interest rates by the end of the year. However, the US Federal Reserve may seek more proof of cooling inflation before the rate cut. A cut in rates would make non-yielding bullion more attractive.
Domestic silver hit an all-time high of Rs 96,493 a kg last month, gaining about 30% since the start of this year. Increased safe-haven demand amid rising geopolitical tensions, US rate cut hopes, speculative buying, and a sharp rally in industrial metals were the driving force behind the sharp rise in prices.
However, although the overseas silver prices gained considerably, the metal is trading far below its lifetime high of $49.51 an ounce touched in 2011.
The recent rally in other base metals prompted speculators to bet largely on this precious white metal. The unique industrial properties of silver made it an essential raw material for various industrial uses. More than half of silver produced across the globe nowadays is consumed in industrial areas.
A substantial rise in gold prices also had a positive influence on silver.