Silver prices on the Multi Commodity Exchange (MCX) jumped nearly 6% on Wednesday, hitting a fresh all-time high of around Rs 4,07,456 per kg, as a powerful global rally, supply tightness, and safe-haven demand combined to push prices sharply higher.
The biggest trigger was a strong surge in global silver prices, which climbed close to the $120 per ounce level after touching record highs earlier this week. International silver has gained nearly 60% so far this year, significantly outperforming most commodities.
One of the key drivers behind the rally is spillover strength from gold, which has also been trading at record levels near $5,600 per ounce. As gold prices rise sharply, investors often turn to silver as a relative value and momentum play, amplifying price gains.
Safe-haven demand has intensified amid persistent geopolitical tensions, trade uncertainty, and concerns over global economic stability. These factors have increased demand for precious metals across the board, with silver benefiting from both investment and industrial demand.
Supply-side constraints have also supported prices. Market participants point to tight availability of above-ground silver stocks, while expectations of a continued supply deficit this year have added to bullish sentiment. Reduced inventories and steady industrial consumption have kept the market structurally tight.
On the technical side, silver prices on MCX have been trading well above key moving averages, triggering momentum buying, short covering, and fresh long positions as prices crossed major psychological levels such as Rs 4 lakh per kg. The sharp breakout accelerated gains during the session.
Additionally, heightened volatility has prompted exchanges to take risk-management measures, including higher margin requirements in overseas markets. Such steps typically reflect increased price swings and confirm the intensity of the ongoing rally.
Domestically, the move in MCX silver was further amplified by currency factors and speculative interest, magnifying the impact of global price gains.
While the speed of the rally raises the possibility of short-term consolidation, analysts said the broader outlook for silver remains supported as long as global uncertainty, strong investment demand, and tight supply conditions persist.
Silver’s near-6% jump on MCX underscores how quickly sentiment has shifted in favour of precious metals, pushing prices to historic highs in both global and Indian markets.
