Silver prices in India continued their upward march on Tuesday, reaching a fresh record high. The rally came amid significant volatility in international white metal markets. Investors flocked to the precious metal as global tensions escalated.
Record-Breaking Performance
On the Multi Commodity Exchange of India, silver opened higher at ₹2,69,701 per kilogram. This was up from the previous close of ₹2,68,970. The price then surged by 1.20 percent to hit a record high of ₹2,72,202 per kg. By the trading session, MCX silver was trading higher by ₹1,577, or 0.59 percent, at ₹2,70,547 per kg.
Spot silver price internationally had already set an all-time high of $86.22 in the previous session. Silver prices jumped more than 6 percent in that last session, showing strong momentum.
Key Drivers Behind the Rally
Several factors are fueling this remarkable rally in silver prices. Global geopolitical tensions have escalated significantly. The Trump administration opened a criminal investigation into Federal Reserve Chair Jerome Powell. This move added to market uncertainty.
US President Donald Trump made a statement on Monday that further fueled worries. He said any country doing business with Iran would face a 25 percent tariff on trade with the United States. Such announcements create ripples across financial markets.
Industrial demand for silver remains robust. There are sustained safe-haven flows into the metal. Non-yielding assets like silver tend to perform well in low-interest-rate environments. They also gain when geopolitical or economic risks spike.
Expert Analysis and Forecasts
Ponmudi R, CEO of Enrich Money, provided insights into the market. He stated, "Silver continues to trade with a strong structural bias. We see medium-term targets above $100 during 2026. This is supported by persistent supply deficits and accelerating demand from industrial and green-energy applications."
He added, "Momentum remains firmly buyer-driven. Structural demand from solar energy, electric vehicles, AI infrastructure, and electronics continues to support higher prices. Combined with sustained safe-haven flows, the outlook is positive."
Meanwhile, Citi raised its three-month price targets for silver to $100 per ounce. The bank cited strong investment momentum and multiple bullish drivers. These factors are likely to remain intact during the first quarter.
Citi noted in a report, "The ongoing physical market shortages on silver and platinum group metals could worsen slightly in the short term. This is due to a potential delay in the Section 232 tariff decisions. These eventually pose large binary risks on trade flows and prices."
Technical Outlook for Silver
Comex silver price is holding firm near $85 after marking a fresh lifetime high. It is trading comfortably above its short- and medium-term moving averages. This follows a decisive breakout from consolidation.
According to Ponmudi R, the $85 zone may invite some profit-taking. However, a clear breakout above $86 to $88 could trigger the next impulsive move toward $90 to $95. Strong support is seen in the $80 to $83 zone.
MCX Silver Price Outlook
The dips in MCX silver price are being met with aggressive buying. This highlights powerful underlying demand. It positions silver as a high-beta leader within precious metals.
Ponmudi R explained, "Sustained strength above ₹2,70,000 keeps upside momentum intact. A breakout beyond ₹2,72,000 could propel prices toward ₹2,85,000 to ₹3,00,000. On the downside, any corrective move below ₹2,60,000 may test the ₹2,55,000 to ₹2,45,000 support zone. Fresh buying interest is expected to emerge there."
Disclaimer: The views and recommendations mentioned are those of individual analysts or broking companies. They are not of Mint. Investors are advised to consult certified experts before making any investment decisions.
