Why silver prices hit all-time high in India and global markets

Silver prices surged to all-time high levels in India on Monday (December 22), tracking a sharp rally in global markets driven by expectations of further US interest rate cuts, strong investment demand and persistent supply constraints.

In the domestic market, silver traded at ₹219 per gram

and ₹2.19 lakh per kilogram.

The rally mirrored a strong move overseas, where spot silver jumped 3.3% to a historic high of $69.44 per ounce. The metal has soared 138% so far this year, significantly outperforming gold, as investors piled into precious metals amid macroeconomic uncertainty.

Analysts said silver has benefited from the same factors driving gold higher, including expectations of easier US monetary policy, geopolitical risks and a weaker dollar, while also drawing support from tight supply conditions.

The broader precious metals rally gathered momentum after the US Federal Reserve delivered its third 25-basis-point rate cut of the year. Softer US inflation data, with CPI easing to 2.7% year-on-year, reinforced expectations of further rate cuts next year, boosting demand for non-yielding assets such as silver.

Rahul Kalantri, Vice President – Commodities at Mehta Equities Ltd, said  silver touched all-time highs in both domestic and international markets at the start of the week. He added that while the Bank of Japan raised interest rates by 25 basis points, its less-hawkish-than-expected stance also supported precious metal prices.

Market participants noted that silver’s outperformance has been underpinned by robust investment inflows and ongoing supply constraints, which have tightened availability even as industrial demand remains resilient.

Seasonal trends have also played a role. “With December usually producing positive returns for gold and silver, seasonality is on their side,” said Matt Simpson, senior analyst at StoneX. However, he cautioned that thinning year-end volumes could increase the risk of profit-taking after the sharp rally.

From a technical perspective, analysts see key support for silver around $66.40–$65.75 per ounce, with resistance near $67.20–$68.00 per ounce.