Silver Makes New High In MCX, Crossed Rs 1 Lakh Per Kg
Weak US economic data and ISM Services PMI contraction sparked concerns of a slowdown and weakening of the dollar: Reports
Chennai: Silver on Thursday hit an all-time high in the Multi Commodity Exchange (MCX) at Rs 1,05,484 per kilogram and made a 12-year international peak near $36.15 per ounce due to weak US economic indicators, rising geopolitical tensions, a softening dollar, and robust industrial demand.
MCX silver had touched Rs 1,02,000 in March this year and in the international market silver saw these levels in October 2012.
Weak US economic data and ISM Services PMI contraction sparked concerns of a slowdown and weakening of the dollar. Federal Reserve rate cut expectations have grown, lowering the opportunity cost of holding silver and boosting investor interest in precious metals.
Renewed Russia–Ukraine tensions and rising global instability have increased safe-haven demand, benefiting silver alongside gold.
“One of the most telling market shifts is the sharp decline in the Gold-Silver Ratio from 107 to 95, suggesting silver is increasingly favoured over gold by investors seeking value and growth potential. The narrowing of this ratio historically signals a phase of silver outperformance, adding to the optimism,” said Ajay Kedia, MD, Kedia Commodities.
Further, industrial demand is surging, supported by strong growth in solar energy, electric vehicles, and electronics, further tightening the supply-demand balance. Technical breakouts above resistance levels have fuelled speculative and institutional buying, adding to the price momentum.
Global dollar weakness has also played a role, making dollar-denominated metals more attractive to international investors.
“Silver could potentially rally up to Rs 1,30,000/kg in 2025, but investors should remain cautious due to expected volatility,” said Kedia.
Overall, silver continues to reflect the dual narrative of a monetary hedge and an industrial growth story. As the global economic environment evolves, the metal’s ability to balance both roles will determine its trajectory in the coming months.