What is the story about?
Silver prices in India surged to an all-time high of ₹2.05 lakh per kilogram in futures trade on Wednesday (December 17), tracking a global rally driven by tightening supplies and expectations of US interest rate cuts next year.
On the Multi Commodity Exchange (MCX), silver futures for the March contract climbed ₹8,179, or 4.14%, from Tuesday’s (December 16's) close of ₹1.97 lakh per kilogram.
.In international markets, Comex silver futures crossed the $66 per ounce mark for the first time, rising 4.65% to $66.27 per ounce.
Analysts attributed the rally to softer US employment data and expectations of potential interest rate cuts, which weighed on the dollar and Treasury yields.
“Silver’s backwardation indicates a tight supply squeeze, pushing prices to record levels in early trading,” said Manav Modi, Analyst – Precious Metals Research at Motilal Oswal Financial Services.
Rahul Kalantri, Vice President of Commodities at Mehta Equities, noted that while international bullion markets showed volatility, domestic prices were supported by a weaker rupee. He added that upcoming US inflation data, including the Consumer Price Index and Personal Consumption Expenditures price index, would influence the near-term trajectory of precious metal prices.
Industry experts highlighted silver’s evolving role in Indian investment portfolios.
Rajkumar Subramanian, Head – Product & Family Office at PL Wealth, said, “While gold remains the primary hedge, silver acts as a leveraged play on global growth and the energy transition. Rising industrial demand, especially in solar, EVs, and electronics, coupled with growing retail participation, is positioning silver as a strategic portfolio diversifier alongside gold.”
-With PTI inputs
On the Multi Commodity Exchange (MCX), silver futures for the March contract climbed ₹8,179, or 4.14%, from Tuesday’s (December 16's) close of ₹1.97 lakh per kilogram.
.In international markets, Comex silver futures crossed the $66 per ounce mark for the first time, rising 4.65% to $66.27 per ounce.
Analysts attributed the rally to softer US employment data and expectations of potential interest rate cuts, which weighed on the dollar and Treasury yields.
“Silver’s backwardation indicates a tight supply squeeze, pushing prices to record levels in early trading,” said Manav Modi, Analyst – Precious Metals Research at Motilal Oswal Financial Services.
Rahul Kalantri, Vice President of Commodities at Mehta Equities, noted that while international bullion markets showed volatility, domestic prices were supported by a weaker rupee. He added that upcoming US inflation data, including the Consumer Price Index and Personal Consumption Expenditures price index, would influence the near-term trajectory of precious metal prices.
Industry experts highlighted silver’s evolving role in Indian investment portfolios.
Rajkumar Subramanian, Head – Product & Family Office at PL Wealth, said, “While gold remains the primary hedge, silver acts as a leveraged play on global growth and the energy transition. Rising industrial demand, especially in solar, EVs, and electronics, coupled with growing retail participation, is positioning silver as a strategic portfolio diversifier alongside gold.”
-With PTI inputs
