Precious metals glittered brightly on the Multi Commodity Exchange (MCX) this Monday, with silver scaling a fresh historic peak and gold rallying in tandem, mirroring a strong upmove in global bullion markets. The surge was fueled by a combination of a softer US dollar and growing anticipation of further interest rate reductions by the US Federal Reserve.
Record-Breaking Numbers on the Domestic Bourse
MCX silver futures for March 2026 expiry skyrocketed by as much as 2.09% to an unprecedented ₹1,78,649 per kilogram. Meanwhile, gold futures on the domestic exchange advanced 0.99% to ₹1,30,794 for every 10 grams. As of 1:30 PM, silver was holding gains of ₹2,629, trading at ₹1,77,610 per kg, while gold was up by ₹1,407 at ₹1,30,911 per 10 grams.
This rally marks the seventh consecutive winning session for silver futures, with the white metal's price soaring by a staggering ₹21,245, or 13.5%, over this period. On a year-to-date (YTD) basis, the outperformance is stark: silver has rallied 91% in 2025, significantly outpacing gold's impressive 66% returns. Over just the last three months, silver has spiked over 40%, compared to gold's 25% gain.
Global Drivers and Analyst Insights
The international backdrop provided a strong tailwind. Spot silver price rose 1.1% to $56.99 per ounce after touching an all-time high of $57.86 during the session. Spot gold edged up 0.1% to $4,235.59 per ounce. The rally was underpinned by a weaker US dollar, with the dollar index dipping 0.03% to 99.43. A softer rupee against the dollar further amplified prices in the Indian market.
Jigar Trivedi, Senior Research Analyst at Reliance Securities, pointed to multiple factors. "Silver price extended its rally amid mounting supply concerns and growing expectations of further Federal Reserve rate cuts," he said. He highlighted that Chinese inventories have plunged to a decade-low following heavy shipments to London, while China's silver exports hit a record high of over 660 tonnes in October.
On the policy front, markets are now pricing in roughly an 85% probability of a third Fed rate cut in December, with three more cuts expected by the end of 2026. Rahul Kalantri, VP Commodities at Mehta Equities, added that silver's technical charts have turned "more bullish," attracting chart-based speculators. He also noted safe-haven buying emerged after trading was halted on the CME due to a data center issue.
Will Silver Continue to Outshine Gold?
While safe-haven demand for both metals is expected to stay robust, analysts believe silver has additional engines for growth. "Comex silver price surge reflects tight supply, expanding solar and electronics demand, and a supportive interest-rate backdrop," explained Jigar Trivedi. He believes these forces may keep silver ahead of gold in 2026, though gains could be uneven due to its industrial sensitivity.
Trivedi elaborated that while gold's central-bank buying provides a strong foundation, silver's structural deficit and demand from technology and clean energy sectors give it a stronger upside bias, assuming global growth remains steady. He pegs support for Comex silver around $52 per ounce, with resistance at $60-62 levels. For MCX silver March expiry, support is at ₹1,68,000 per kg and resistance at ₹1,87,000.
Market participants now await key US macroeconomic data releases, including the ISM Manufacturing PMI for November, which could offer fresh cues on the economic health and short-term direction for bullion prices.
