Silver Price Hits Record High in India: What’s Driving the Surge?

Silver Touches Record High on MCX: Silver prices in India surged to fresh record levels, with MCX silver futures jumping sharply in intraday trade. The metal crossed the ₹2.87 lakh per kg mark, reflecting strong buying momentum and renewed investor interest in precious metals.

Softer US Inflation Sparks Precious Metal Rally: A key trigger behind the rally was weaker-than-expected US core inflation data for December. Cooling inflation has strengthened market expectations that the US Federal Reserve may begin interest rate cuts in 2026, boosting demand for non-yielding assets like gold and silver.

Global Uncertainty Fuels Safe-Haven Demand: Ongoing geopolitical tensions—including unrest in Iran and rising global economic uncertainty—have pushed investors toward safe-haven assets. This risk-off sentiment has provided additional support to silver prices alongside gold.

Industrial Demand Gives Silver an Extra Edge: Unlike gold, silver benefits heavily from industrial usage. Strong demand from sectors such as solar power, electric vehicles, electronics, AI hardware, and advanced manufacturing has added structural strength to the ongoing rally.

India’s Growth Story Strengthens Silver Outlook: In India, silver’s dual role as an investment asset and industrial metal is becoming more prominent. Rising renewable energy adoption, infrastructure spending, and increasing participation from retail and high-net-worth investors are reinforcing long-term demand.

Technical Breakout Signals Strong Momentum: Market experts note that silver has broken above key short- and medium-term averages, indicating buyer dominance. Prices remain firmly in a bullish channel, with sustained strength above ₹2.85 lakh keeping the upside bias intact in the near term.

What Should Investors Keep in Mind?: While some analysts see potential for further upside toward ₹2.90–3.00 lakh levels, others caution that silver is more volatile than gold. Experts advise disciplined allocation, awareness of sharp price swings, and a medium- to long-term perspective when investing at elevated levels. The above information is based on market reports from  Business Today and Zee News and is for educational purposes only. It does not constitute investment advice.

Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp