Mumbai: Silver, the precious metal that has been witnessing an unprecedented rally for over two years, on Thursday breached above the Rs 4-lakh/kg price level for the first time in history as geopolitical tensions kept international prices of the white metal on the boil.Gold, the more precious of the two, which is also witnessing a more than a year-long rally, went above the Rs 1.8 lakh/10gm mark on MCX.In the international market, silver prices rallied above the $120/ounce (Oz) mark, while gold prices broke above the $5,600/Oz mark, both for the first time in its history. However, silver dropped by 6% and gold by 4% as investors booked profits after record highs.On MCX, in late trades, gold futures contracts for Feb delivery were trading at Rs 1.75 lakh level with the day’s high at almost Rs 1.81 lakh. With the Feb contracts nearing expiry, April futures were the most traded ones on Thursday with the day’s high at Rs 1.93 lakh.Also on MCX, silver contracts for March were trading at Rs 4.2 lakh, at the highest price logged on Thursday.According to Rahul Kalantri, VP Commodities, Mehta Equities, gold extended its record-breaking rally on Thursday as investors increased their demand for safe-haven assets in the backdrop of mounting geopolitical and economic uncertainty. Silver also strengthened due to similar reasons.On Thursday, these metals rallied further despite the US Federal Reserve’s decision to leave interest rates unchanged, reinforcing expectations of prolonged monetary support, Kalantri said. “Investors are increasingly shifting away from paper currencies and moving toward tangible assets such as precious metals. Meanwhile, geopolitical uncertainty rose after the US President Donald Trump urged Iran to reach a nuclear deal, warning that any future US military response could be far more severe.“
