Prices of the silver metal continued to run higher and hit a fresh record high of ₹1.10 lakh per kg on the Multi Commodity Exchange (MCX). Amid persisting geopolitical uncertainties, investors have flocked towards traditional safe haven assets in search for safety.
Buoyed by the shift, silver moved to the front seat, logging in a 2.3% gain in prices in the last session. July futures on the MCX traded at ₹1.09 lakh per kg today, around 1% higher than the last session.
The buoyant demand for silver in the local market mirrors the robustness seen across global markets. Silver prices crossed $37.23 per troy ounce, levels not seen since February 2012. “Gold and silver prices saw high fluctuations amid geopolitical tensions. Silver broke above $37 an ounce for the first time in over a decade. Weakness in the rupee is also supporting silver in domestic markets,” said Rahul Kalantri, VP Commodities at Mehta Equities.
Kalantri noted that silver has immediate resistance at ₹1.09 lakh–₹1.10 lakh per kg and support at ₹1.08 lakh–₹1.07 lakh per kg.
Looking ahead, Tejas Shigreka , Chief Technical Research Analyst Commodities and Currencies at Angel One sees silver going strong, underpinned by safe-haven demand amid persistent geopolitical and economic uncertainties.
“Ongoing geopolitical tensions such as the Russia-Ukraine conflict and regional instabilities—alongside macroeconomic challenges, including inflationary pressures, recession risks, and fiscal imbalances in major economies like the US, are compelling investors to seek refuge in precious metals to safeguard their wealth,” Shigreka said.
Meanwhile, the historically elevated gold-to-silver ratio, which measures how many ounces of silver are required to purchase one ounce of gold, also points towards silver’s relative undervaluation. Looking at that variation, several market analysts are hoping to see silver outpace the growth in gold prices in the coming time.
“Furthermore, a weakening US dollar enhances the attractiveness of silver and other dollar-denominated commodities to international buyers, boosting demand significantly. Trading volumes have also turned above-average amid rekindling interest from both institutional and retail investors,” he added.
Other tailwinds supporting the upswing in silver prices have been rising industrial demand linked to the global green energy transition, persistent supply constraints, and its dual role as a safe-haven asset poised to capitalize on gold’s rally. These factors combine to create a positive and compelling outlook for silver, with strong potential for continued gains in the foreseeable future, Shigreka forecasted.
