Silver Extends Record-Breaking Rally: Prices Hit ₹1,93,720/kg Amid Global Momentum and US Fed Rate Cut

Silver continued its extraordinary upward trajectory on Thursday, marking a third consecutive day of record highs. Futures on the Multi‑Commodity Exchange (MCX) surged to a fresh peak of ₹1,93,720 per kg, tracking strong global cues and renewed optimism following the US Federal Reserve’s latest rate cut.

A Historic Surge: Silver Up 122% in 2025

The rally in silver has been nothing short of remarkable this year.
As of Thursday:

• Silver futures rose ₹4,985 (2.64%), hitting an all‑time high of ₹1,93,720/kg.

• Prices have gained ₹1.06 lakh (122.07%) since December 31, 2024.

• Last year’s closing price stood at ₹87,233/kg — showcasing the sharp re‑rating of the metal.

Silver’s rally is being fueled by a combination of factors:

• Softer global interest rates

• Rising industrial demand (especially from renewable energy and electronics)

• Geopolitical risk hedging

• A bullish commodities cycle

Gold Joins the Rally — Though More Modestly

Gold futures for February delivery also edged higher on the MCX, climbing:

• ₹845 (0.65%) to ₹1,30,641 per 10 grams

While silver has outpaced gold significantly in percentage terms, both metals are benefiting from:

• A weaker US dollar

• Lower bond yields

• Expectations of prolonged monetary easing cycles globally

Market View: Fed’s Cautious Approach Supports Precious Metals

According to Manav Modi, Commodities Analyst (Precious Metals Research), Motilal Oswal Financial Services:

“Gold continues to trade steady while silver marked an all-time high on domestic as well as on Comex, as market participants digest yet another cautious cut by the US central bank.”

The US Federal Reserve’s latest rate cut signaled its continued focus on supporting economic conditions. Lower rates generally strengthen precious metals by reducing the opportunity cost of holding non-yielding assets like gold and silver.

What’s Next for Silver?

Analysts believe silver’s momentum could remain intact due to:

• Strong industrial consumption (solar, EVs, semiconductors)

• Tightening supply-demand dynamics

• Macro tailwinds from rate cuts and currency softness

However, at elevated prices, short-term volatility cannot be ruled out.

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