Gold and silver prices witnessed a sharp rally on Wednesday, with silver leading the gains by rising significantly in the domestic market. The surge came amid strong global cues, a weaker US dollar, and improving risk sentiment across commodity markets.

In India, silver prices jumped by more than ₹6,000 per kilogram, taking the domestic rate to around ₹2,65,000 per kg. On a per-gram basis, silver also saw an increase of nearly ₹10, reflecting strong buying interest in the industrial metal segment.

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Gold prices also moved higher across categories, with 24-carat gold rising by over ₹2,000 per 10 grams. Meanwhile, 22-carat and 18-carat gold also recorded steady gains, supported by positive sentiment in the bullion market and sustained demand from buyers.

Market analysts attributed the rally largely to global factors. International gold prices rose by more than 1%, supported by a weakening US dollar, which made dollar-denominated commodities cheaper for international buyers. This led to increased demand from both domestic and overseas investors.

Additional support came from easing crude oil prices, which helped ease inflation concerns and reduced expectations of prolonged high interest rates. Lower inflation pressure generally boosts demand for safe-haven assets like gold, further strengthening bullion sentiment.

Geopolitical developments also played a role in supporting prices. Reports of possible easing tensions in the Middle East improved overall market sentiment, although gold continued to attract safe-haven buying. Silver, meanwhile, outperformed several other commodities, with gains also seen in platinum and palladium in global trade.

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