Silver prices have witnessed an extraordinary surge, touching record highs on the Multi Commodity Exchange (MCX) as global and domestic factors align in favour of the white metal. On Tuesday, MCX silver opened sharply higher and surged over 6% during the session, briefly touching an all-time high near Rs 3,59,800 per kg.
The rally has been largely driven by strong fundamentals rather than short-term technical factors. According to market experts, rising industrial demand from sectors such as renewable energy, electric vehicles, electronics and data centres has significantly boosted silver consumption. At the same time, supply constraints have tightened the market, creating upward pressure on prices.
Global cues have played a crucial role as well. International silver prices on COMEX have climbed to fresh record highs, supported by robust industrial demand and increased safe-haven buying amid macroeconomic uncertainty and geopolitical risks. Since Indian silver prices closely track global bullion markets, the overseas rally has directly translated into higher MCX rates. A relatively weaker rupee has further amplified the price rise in the domestic market.
Technical momentum remains firmly bullish. Analysts note that silver has broken out decisively, with prices sustaining well above key resistance levels. Immediate upside targets are seen in the Rs 3,65,000 to Rs 3,70,000 range, while any dips towards the Rs 3,40,000–Rs 3,50,000 zone could attract fresh buying interest.
However, experts caution investors against chasing the rally blindly. Silver is known for its sharp price swings, and elevated levels increase the risk of volatility. While the long-term outlook remains supportive due to silver’s dual role as a precious and industrial metal, analysts recommend staggered buying, limited exposure and proper diversification. For retail investors, silver is currently viewed as a tactical allocation rather than a core portfolio hedge as prices hover near record highs.
