Silver hits ₹2 lakh mark as prices surge nearly 28% in a month

Silver prices reached a record high of above $63.84. On the MCX, the prices hovered around Rs 1,98,999, correcting a bit after touching lifetime highs above ₹2,00,000 earlier in the weekend. The price has risen by almost 27.68% in a month. Despite the pullback, the strong upward channel remains intact, supported by persistent supply constraints and accelerating industrial demand. Analysts say as long as prices remain above ₹1,80,000–₹1,81,000, the long-term bullish framework remains unchallenged.  

Rahul and crude by Kalantri, VP Commodities, Mehta Equities Ltd said, "Silver made a fresh lifetime high in both internationally and the domestic market before witnessing profit booking. Volatility may persist in the near term, though silver is expected to find support at $60 per troy ounce."

Robust industrial demand coupled with supply limitations keep silver solidly in a bullish trend.

Adding to it, Ponmudi R, CEO of Enrich Money, said, "Silver continues to outperform gold, maintaining strong relative strength globally and domestically. COMEX Silver has confirmed a decisive breakout above $62.80, signalling trend acceleration supported by industrial demand and a softer dollar. Holding above $63 keeps the upside open toward $64–65, while immediate support lies at $61.30, followed by the rising slope support near $60."

Silver is also benefiting from a notable physical squeeze. Asian buyers are aggressively demanding physical delivery, while Western sellers are finding it increasingly difficult to meet their derivative‐linked obligations.

Anindya Banerjee, Head Currency and Commodity, Kotak Securities, said, "The initial pace of around $40 billion in T-bill purchases starting mid-December is being viewed by markets as a form of quasi-QE. Combined with a 25 bps rate cut at a time when U.S. inflation risks are tilting higher, this has amplified concerns about faster dollar debasement. Naturally, both gold and silver have responded with strong gains."

On the other hand, Gold hovered near two-month highs in global markets after the U.S. Federal Reserve reduced interest rates by 25 basis points. A weaker dollar index, which fell to near two-month lows, provided further support for precious metals.