Silver prices moved sharply higher in the futures market last week, crossing a fresh milestone of ₹2,42,000 a kg on MCX. The rally unfolded over five straight sessions, with the March 2026 contract jumping more than 15% in a holiday-shortened week. Traders appeared to step up buying amid heightened volatility, as global cues stayed supportive.
By Friday, silver futures had risen ₹31,348 from December 19 levels, before settling slightly lower at ₹2,39,787 a kg. Even with the late pullback, prices remained close to record territory, reflecting the strength of recent momentum.
The domestic surge mirrored moves in international markets. On Comex, silver touched an all-time high of $79.70 an ounce, rising over 11% in a single session before easing to $77.19. Over the past week, global prices gained nearly 14.5%, while the calendar year has seen a sharp jump from $29.24 an ounce recorded on December 31, 2024.
Market participants said the rally appears to be aligned with expectations of US interest rate cuts in 2026, which could keep precious metals attractive as alternative assets.
Analysts pointed out that silver is increasingly being viewed beyond its traditional role as a precious metal. Rahul Kalantri, vice president, commodities at Mehta Equities, said silver’s growing use in high-performance technology, alongside tightening supplies, is reshaping how the metal is priced.
According to him, steady industrial consumption, exchange-traded fund inflows and physical demand, combined with capital moving out of equities into commodities, have kept prices well supported.
Concerns around global supply also played a role. Commodities market experts noted tightening availability, particularly in China, the world’s largest consumer of silver. China is a major producer of solar panels, electronics and electric vehicles, all of which rely heavily on the metal.
Analysts said Beijing has announced export restrictions on silver starting January 1, 2026. Companies will need licences to ship the metal overseas, with the curbs expected to remain until 2027. The move is seen as one that could disrupt global supply chains and add further pressure to prices.
The numbers underline how dramatic the move has been. In the domestic market, silver prices have risen by over ₹1.52 lakh a kg so far this year, translating into gains of nearly 175% from December 31, 2024 levels. In global markets, prices are up more than 160% over the same period.
For now, market watchers say silver remains firmly in focus, as traders weigh strong industrial demand against evolving supply risks.