Silver price racing toward Rs 3.5 lakh: Is someone manipulating it? Top Indian jewellers alert FM Sitharaman

India’s top jewellers have raised concerns over a sudden spike in silver prices on the Multi Commodity Exchange (MCX). In a letter dated January 21, the All India Jewellers & Goldsmith Federation (AIJGF) told Finance Minister Nirmala Sitharaman that silver contracts were trading at around Rs 40,000 per kg above the “prevailing benchmark/spot-linked parity”, a TOI report stated.

The letter, signed by AIJGF national president Pankaj Arora and national general secretary Nitin Kedia, alleged that this “sharp and sudden dislocation” was widely linked to rumours about a possible import duty hike on silver.

MCX responds to volatility claims

An MCX spokesperson told TOI: “Silver markets are experiencing heightened volatility due to evolving geopolitical developments, which along with local fundamentals have been reflected in the domestic market. Prices discovered on MCX provide a hedge against currency movements, duties and local market dynamics.”


MCX also stressed that it operates with a robust surveillance mechanism and follows regulatory norms.

Silver and gold ETFs tumble, then recover

On Thursday, silver and gold ETFs fell about 20% in early trades but closed roughly 11% lower. On MCX, silver contracts for March delivery ended 2.7% down, while gold for February delivery dipped 0.8%.

Friday saw a strong recovery in precious metals. Gold and silver prices surged on ongoing geopolitical tensions, a weaker US dollar, and expectations of Federal Reserve interest rate cuts at its upcoming meeting on January 27.

U.S. President Donald Trump claimed he had secured permanent U.S. access to Greenland in a deal with NATO, though Denmark maintained its sovereignty over the island was “not up for discussion.”

Silver rate today

MCX gold futures for February 5, 2026 delivery rose Rs 2,885 (2%) to Rs 1,59,226 per 10 grams, while silver futures for March 5, 2026 delivery climbed Rs 12,638 (3.8%) to Rs 3,39,927 per kg.

Global markets mirror the trend

Internationally, spot gold gained 0.5% to $4,961.57 per ounce, after briefly hitting a record $4,966.59. U.S. gold futures for February delivery rose 1.1% to $4,964.60 per ounce. Spot silver jumped 0.9% to $97.01 per ounce, after touching a record high of $97.44 earlier in the day.

Goldman Sachs raised its end-2026 gold price forecast to $5,400 per ounce from $4,900, citing a structural shift in demand driven by private investors and emerging-market central banks.

Gold, considered a safe store of value during political and economic uncertainty, soared 64% in 2025 and is already up 11% in 2026, while silver follows closely behind.