Silver prices surged to a fresh all-time high on the Multi Commodity Exchange (MCX) on Tuesday, extending the strong momentum seen over the past two sessions. MCX silver futures climbed to Rs 2,71,679 per kg, marking a new lifetime peak, as investors continued to chase safe-haven assets amid heightened global uncertainty.
The continuous silver contract was trading around Rs 2,71,436 per kg, up nearly 1%, following Monday’s sharp rally when prices had jumped over 6% in a single session.
Strong global cues lift MCX silver
The rally in domestic silver prices mirrors the explosive move seen in global markets. International silver prices surged close to $85.75 per ounce, touching a record high earlier this week, after rising nearly 7% in a day. Although prices eased slightly from the peak, silver continues to trade near elevated levels, supporting sentiment in the Indian market.
Gold prices have also played a key role in lifting silver. Spot gold hit a record high above $4,630 per ounce, while US gold futures settled sharply higher, reinforcing bullish momentum across the precious metals complex.
Safe-haven demand intensifies
A major driver behind the rally has been a sharp increase in safe-haven buying. Global investors rushed into precious metals after uncertainty deepened around the US Federal Reserve. Federal Reserve Chair Jerome Powell recently disclosed that the US Justice Department served subpoenas related to the renovation of the Fed’s headquarters and his testimony on the issue, unsettling financial markets.
The development raised concerns around institutional stability and policy independence, prompting investors to seek refuge in hard assets such as gold and silver.
Rate-cut expectations add support
Another key factor supporting silver prices has been growing expectations of interest rate cuts in the United States. Recent US economic data pointed to a cooling labour market, with weaker-than-expected job growth in December. Markets are now pricing in multiple Federal Reserve rate cuts this year, which tends to benefit non-yielding assets like silver by lowering the opportunity cost of holding them.
Technical momentum and short-covering
Market participants also pointed to strong technical factors amplifying the rally. After recent bouts of selling linked to commodity index rebalancing, the easing of selling pressure triggered fresh long positions and aggressive short-covering. Thin liquidity conditions further magnified price moves, pushing silver swiftly to record highs.
With silver now trading at unprecedented levels on MCX, the metal remains firmly in focus as global uncertainty, monetary policy concerns and technical momentum continue to drive demand.
