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New Delhi: Precious metals extended their sharp rally for the second straight day in the national capital on Wednesday, February 4, with silver prices surging to Rs 2.98 lakh per kg and gold climbing to Rs 1.65 lakh per 10 grams.

Firm global trends, a weak US dollar, which revived investor interest in precious metals after last week’s steep sell-off, contributed to the surge, traders said.

According to the All India Sarafa Association, silver soared by Rs 14,300, or 5.03 per cent, to Rs 2,98,300 per kilogram (inclusive of all taxes). The white metal closed at Rs 2,84,000 per kg in the previous session.

Gold of 99.9 per cent purity also advanced sharply, gaining Rs 7,400, or 4.69 per cent, to Rs 1,65,100 per 10 grams (inclusive of all taxes), compared with Tuesday’s close of Rs 1,57,700 per 10 grams.

“Gold and silver extended their rebound on Wednesday, with gold prices rising over 3 per cent and touching around Rs 1.6 lakh per 10 g, while silver jumped as much as 6 per cent intra-day after a period of sharp volatility and correction,” Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.

In the international market, spot silver gained USD 4.28, or 5.03 per cent, to USD 89.35 per ounce, while gold rose by USD 100.03, or 2.02 per cent, to USD 5,047.07 per ounce.

Gold and silver advanced on Wednesday, driven by renewed safe-haven buying amid escalating geopolitical tensions between the US and Iran, Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said.

“This confrontation undermines the optimism over the US-Iran nuclear talks later this week and has raised concerns about the potential for further conflict between Washington and Tehran, which could increase the risk premium on gold and heighten demand for safe-haven assets,” Gandhi said.