Silver's Impressive Rally
The price of silver has seen an extraordinary rise in the first month of 2026, continuing the upward trend from the previous year. This surge has pushed
the price to an unprecedented Rs 4 lakh mark, a milestone not witnessed since the start of January. This increase has been significant across various markets, indicating a strong demand for silver. Specifically, on the Multi-Commodity Exchange (MCX), silver futures contracts set to expire in March saw a notable jump of 5.62%, reaching Rs 3,79,300 per kg. This performance reflects the increasing value and interest in silver as a commodity in the Indian market, influenced by both domestic and international factors. This trend highlights the dynamics of the precious metals market, showing the metal's importance in the financial landscape.
Factors Driving the Surge
Several factors contribute to the remarkable rise in silver prices. Ponmudi R, CEO of Enrich Money, explained that robust demand from sectors like solar energy, electric vehicles (EVs), artificial intelligence (AI), data centers, and electronics is a key driver. Additionally, silver's role as a safe-haven asset and its appeal as a hedge against inflation also fuels its demand, thus increasing its value in the market. This combination of industrial demand and investment interest has created a perfect environment for price appreciation. The interconnectedness of these sectors and market perceptions underscores the current trends in the silver market. Investors and industry professionals closely monitor these influencing factors to anticipate future market behaviors. These various demands, along with macroeconomic considerations, have collectively propelled silver prices upwards across the Indian market.
City-Wise Price Variations
The price of silver has not increased uniformly across all cities in India. For example, Hyderabad saw a significant jump, with prices hitting Rs 4,00,000 per kg. This increase represents a surge of Rs 1,44,000 within just 28 days, illustrating the rapid pace of price changes in certain regions. While the data specifies a price point for Hyderabad, information about rates in other major cities like Chennai, Kolkata, Ahmedabad, Mumbai, and Delhi is also present in the original article. This demonstrates the variability in silver prices from one city to another, influenced by local market conditions and demand. Understanding these variations is essential for investors and consumers interested in purchasing or selling silver in different parts of India.
Global Market Influences
Global market trends also play a crucial role in shaping silver prices in India. At the COMEX, silver has surged toward $115.42 and is now consolidating in the $106.55–$113 range after marginal profit-taking. Despite consolidation, the structural breakout is firmly in place, with prices trading well above all key moving averages and within a steep rising channel. This indicates that global market performance impacts the commodity's trajectory. A decisive move above the $118.50–$120 zone could potentially trigger rapid upside targets, possibly reaching $125–$140+ in the future, as suggested by experts. International market activity directly affects silver's value, reinforcing the importance of analyzing both local and global indicators.
