Silver prices surged sharply on the Multi Commodity Exchange (MCX) on Wednesday, rising more than 5%, tracking a strong rally in global markets and sustained buying momentum.
The sharp jump came after spot silver rose around 0.6% to $113.63 per ounce, after touching an all-time high of $117.69 per ounce earlier this week. Silver has already gained nearly 60% so far this year, significantly outperforming most other commodities and even gold.
Market participants point out that the speed of the rally has been unusually rapid, underlining aggressive buying interest. Silver moved from $80 to $90 per ounce in about 15 days, climbed from $90 to $100 in just 10 days, and crossed the $100–$110 range in a single session, reflecting intense momentum-driven trades.
According to commodity market experts, the surge is being driven by a combination of safe-haven demand, trade-related uncertainty, and spillover strength from gold, which itself is trading near record highs. Rising geopolitical risks and tariff-related concerns have pushed investors toward precious metals, with silver benefiting disproportionately due to its lower liquidity and higher volatility compared to gold.
Experts also note that domestic silver prices continue to trade well above key moving averages, signalling strong bullish momentum. However, technical indicators such as the Relative Strength Index (RSI) suggest silver is currently in overbought territory, raising the possibility of short-term consolidation. Some analysts caution that emerging RSI divergence could lead to brief pauses or pullbacks, even though the broader trend remains moderately positive.
The sharp volatility has prompted risk-management action from global exchanges. CME Group has announced a hike in margins on Comex silver futures to 11% of notional value from 9%, a move typically taken to manage heightened price swings and systemic risk during periods of extreme volatility.
In India, elevated silver prices are also adding pressure to the gems and jewellery sector, where rising input costs have tightened margins. Industry experts believe recent trade developments, including the India–EU Free Trade Agreement, could offer some relief to exporters by easing access to European markets at a time when precious metal prices are rising sharply.
Overall, today’s sharp rise in MCX silver prices reflects record global prices, intense speculative momentum, safe-haven buying, and strong spillover from gold, even as volatility remains elevated in the near term.
