Silver prices in India skyrocketed to a fresh all-time peak on Tuesday, reflecting a powerful global rally fueled by robust industrial demand and investor interest. In a significant move, the precious metal climbed by Rs 1,000 to reach Rs 2.41 lakh per kilogram in the national capital, according to data from the All India Sarafa Association quoted by PTI.
Domestic and Global Markets in Sync
The surge in domestic prices was mirrored in international markets, providing a strong tailwind. Spot silver prices jumped sharply by $3.72, or 5.15%, to settle at $75.85 per ounce. This remarkable ascent underscores silver's dual appeal as both a critical industrial component and a sought-after investment asset, especially against a backdrop of tight global supply.
Interestingly, gold moved in the opposite direction domestically, even as it gained globally. 99.9% pure gold prices in India weakened by Rs 2,800 to Rs 1,39,000 per 10 grams (inclusive of all taxes), marking a second consecutive session of decline from the previous level of Rs 1,41,800. This dip occurred despite spot gold prices on the global stage rising by $69.61, or 1.61%, to $4,401.59 per ounce.
Industrial Demand and Futures Market Activity
Market experts point to sustained industrial consumption as a key driver behind silver's sharper upward trajectory compared to gold. The demand is particularly strong from the solar panel, electronics, and data centre sectors, which rely heavily on the metal's conductive properties.
The bullish sentiment was vividly captured on the domestic derivatives platform. Silver futures contracts for March 2026 delivery on the Multi Commodity Exchange (MCX) rallied by Rs 9,590, or 4.27%, to Rs 2,34,019 per kilogram. The trading activity was substantial, with a turnover of 11,915 lots, indicating aggressive positioning by traders amidst heightened volatility.
This rally followed an explosive session on Monday, where silver futures had already skyrocketed by Rs 14,387, or 6%, to hit a then-record high of Rs 2,54,174 per kg on the MCX.
Analysts Maintain Constructive Outlook
Despite expectations of near-term price swings, analysts remain positive about silver's medium-term prospects. Jigar Trivedi, Senior Research Analyst at Reliance Securities, highlighted the structural factors at play. "Silver continues to find support from structural supply constraints and strong industrial demand," Trivedi noted. He added that while stricter margin norms could limit sharp gains in the short term, the MCX Silver March contracts could aim for levels around ₹2.26 lakh per kg, given the persistently bullish global undertones.
The day's trading action paints a clear picture of a market where silver has decisively outperformed, carving its own path based on unique fundamental drivers separate from its traditional counterpart, gold.
