Domestic silver futures zoomed more than two per cent to trade within inches of their all-time peaks after Fed Chair Jerome Powell’s much-anticipated address at the annual Jackson Hole symposium in Wyoming, United States, sparked fears of weakness in the global economy. The wild moves in precious commodities come at a time when investors worldwide have spent several weeks assessing the potential impact of US President Donald Trump’s confusing trade policy on growth in the world’s largest economy as well as its spillover effects on others.
Gold and silver rates spike; white metal near record high, all eyes on Fed Chair’s Jackson Hole commentary
At 9:45 pm, MCX silver futures (September 5) traded at Rs 1,16,100, up Rs 2,394, or 2.1 per cent, from the contract’s previous close. Earlier on Friday, the white metal contract surged as much as Rs 2,635, or 2.3 per cent, to Rs 1,16,341 — only Rs 300 shy of the all-time high of Rs 1,16,641.
How the yellow metal fared
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MCX gold futures (October 3) also registered strong gains, trading higher by Rs 894, or 0.9 per cent, at Rs 1,00,329, after touching an intraday high of Rs 1,00,449.
What Jerome Powell said in his keynote at Jackson Hole
In his address at the annual gathering of central bankers, policymakers, economists, academics and market participants from across the globe, the Fed Chair warned of rising job risks, noting that the impact of trade tariffs on inflation may prove temporary.
However, he flagged “increasing downside risks to employment”, adding that it would be “reasonable” to expect Trump’s tariffs to impart only a short-lived impact on inflation.
Typically, financial uncertainties and risk-off sentiment give a fillip to precious metal prices as investors move away from riskier assets such as equities to safer bets.
Jackson Hole updates are closely tracked by investors and policymakers around the world for signals on future interest rate direction and the American central bank’s outlook on the US and global economies.
