Silver prices hit Rs 1,00,000/kg mark on MCX for the first time. What’s ahead?

Silver December future prices on MCX hit the Rs 1,00,000/kg mark for the first time in today’s session, showing solid strength amid volatility in the dollar index and geo-political tensions.

The surge in the white metal has also been pushed by the de-dollarization trade happening across the world.

The ongoing geopolitical tensions and the risk of economic instability among global economies are also driving investors toward precious metals as these are frequently seen as a safe haven during difficult times, offering defense against inflation and market instability.


Among the metals, silver has outperformed other precious metals, according to a report by DSP mutual fund.

Silver is extensively utilized in electronics, solar panels, batteries, and increasingly in semiconductors, making it a critical component in modern technology. The growing industrial demand for silver along with the anticipation of another rate cut by the Federal Reserve is leading to an increase in the metal's market value.

“The metal has gained significant upward momentum, as gold prices surge and retail buyers increasingly turn to silver, seeing it as a more affordable alternative at current levels,” said Vishnu Kant Upadhyay, AVP - Research and Advisory at Master Capital Services.

“The growth of silver ETFs has provided investors with an easier and more liquid option to gain exposure to silver, which is seeing increased demand among investors,” Upadhyay added.

Further, the demand for silver often sees a noticeable increase during festive seasons, especially in countries like India where silver is traditionally favored for jewelry and gifting.

As technology continues to advance and the demand for electronics and semiconductors increases, the upward momentum for silver prices is expected to remain robust in the future.

“Silver prices have surged to a significant psychological level of 100,000 on domestic exchanges, in line with global trends where Comex silver is trading near its highest point since October 2012. Recently, prices broke out above the neckline resistance of an inverse head and shoulder pattern, accompanied by a notable rise in trading volumes, signaling increased buying interest among market participants,” Upadhyay said while commenting on the metal’s technical outlook.

On charts, the prices are holding above their short-term moving averages, the 21 and 55-day EMAs, further supporting the likelihood of continued upward momentum.

Upadhyay anticipates the prices to move higher, potentially reaching Rs 1,10,000 and Rs 1,20,000 in the near future.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)