Silver hits $45 per ounce, precious metals soar as IMF cautions about rising public debt

Silver futures scaled up fresh 14-year highs as a break above $40 per ounce extended for the metal. The benchmark Silver futures spiked around 2% in the last session and have convincingly taken out the $45 mark now as the precious metals segment stayed in excellent shape amid worries over global debt levels and broad concerns over tariff scenario. Geopolitical concerns also supported sentiments. IMF stated in its latest annual report yesterday that expansive fiscal policies are contributing to increased term premiums on government bonds?raising borrowing costs and dampening economic activity. Left unaddressed, these pressures could lead to solvency problems for many vulnerable countries. Moreover, the significant uncertainty discussed in Pursuing Durable Growth in an Uncertain World is impacting fiscal outlooks as well as growth. The fund noted that recent analysis suggests that increased geoeconomic uncertainty is linked to a rise in public debt of about 4.5% of GDP in the medium term. This is largely a result of widening fiscal deficits, with rising expenditure and falling revenues. MCX Silver futures are trading at Rs 137694 per kg, up 0.47% on the day.

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