MUMBAI: Continuing its upward momentum, silver prices surged by Rs 1,000 to reach a fresh all-time high of Rs 1,08, 100 per kilogram in the national capital on Monday, according to the All India Sarafa Association.
This follows a steady performance on Saturday, when the white metal traded flat at Rs 1,07,100 per kg (inclusive of all taxes), after soaring by Rs 3,000 to hit a previous record high of Rs 1,07,100 per kg on Friday.
In the international market, spot silver rose by 0.9% to USD 36.30 per ounce. On the MCX, silver prices were trading above 106,500 level on Monday.
The recent surge in silver prices is driven by strong industrial demand, particularly from the EV and solar sectors. Further, heightened geopolitical tensions and a weakening dollar have bolstered its appeal as a hedge. Commodity experts suggest that the metal could scale new peaks in the near future.
Tejas Shigreka, Chief Technical Research Analyst Commodities and Currencies at Angel One said that the outlook for silver in the coming weeks appears robust, underpinned by safe-haven demand amid persistent geopolitical and economic uncertainties.
“Ongoing geopolitical tensions—such as the Russia-Ukraine conflict and regional instabilities—alongside macroeconomic challenges, including inflationary pressures, recession risks, and fiscal imbalances in major economies like the United States, are compelling investors to seek refuge in precious metals to safeguard their wealth,” said Shigreka.
He added that a weakening U.S. dollar further enhances the attractiveness of silver and other dollar-denominated commodities to international buyers, boosting demand significantly. Key psychological resistance levels, notably the $35 per ounce mark, have been breached, triggering above-average trading volumes and rekindling strong interest from both institutional and retail investors.
Silver has exhibited noteworthy strength, gaining approximately 8.7% in the first week of June following a decisive breakout past critical resistance levels. “Surpassing the closing price of Rs 102,132/kg noted in August 2020 has attracted momentum-driven traders and solidified confidence in the bullish trend. Continued price consolidation above these pivotal thresholds is likely to further reinforce upward momentum, signaling sustained strength in the metal’s trajectory,” stated Shigreka.
He added, “Trading consistently above 107,600 levels would lead towards the strong resistance at 108,700 levels and then finally towards the major resistance at 112,900 levels.”
Considering MCX Ahmedabad market's closing spot prices of Silver for the calculation, Apurva Sheth, Head of Market Perspectives & Research, SAMCO Securities said that every time silver breaks past its previous highs, it doesn’t just make headlines—it makes moves.
“The latest breakout above the psychological mark of Rs 1,01,000 is more than just a number. It's a technical breakout from a long consolidation phase, and it signals fresh momentum building up…In previous cycles, such breakouts have been triggered and sustained by macro tailwinds like rising inflation, global liquidity infusions, or safe-haven demand and once the train starts moving, it tends to pick up the speed,” Stated Sheth.
“With the current macro setup, geopolitical tensions, currency volatility, and potential central bank pivoting,silver’s appeal as a hedge is rising. Retail and institutional interest is building, and technically, the setup is textbook bullish. This isn’t just a metal move, it’s a momentum. The silver train has left the station before,” added Sheth.
Meanwhile, Gold prices of 99.9 per cent purity fell Rs 280 to Rs 97,780 per 10 grams (inclusive of all taxes) on Monday. The yellow metal had declined by Rs 1,630 to Rs 98,060 per 10 grams on Saturday. Globally, spot gold rose marginally to USD 3,312.84 per ounce.
"Gold consolidated in the lower end of its range on Monday amid mixed signals. The highly anticipated talks between the US and China have raised hopes that the two largest economies can make progress on various disputes, which could reduce demand for safe havens".
"Additionally, the latest Nonfarm Payrolls report in the US was strong, prompting traders to re-evaluate their expectations regarding a potential easing of monetary policy by the Federal Reserve, which also serves as a headwind for the yellow metal," said Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities.