Fastest ever Rs 1-lakh/kg rise for silver on MCX; hits Rs 4-lakh mark

Silver prices on the Multi Commodity Exchange (MCX) for March crossed the 4-lakh per kilogram (kg) mark on Thursday, rising over 5 per cent to hit a high of Rs 408,487.

 

The white metal had hit the Rs 3-lakh a kg mark on 19 January, 2026, after having crossed the Rs 2-lakh a kg mark on 17 December, 2025. The rise from Rs 3-lakh to Rs 4-lakh a kg mark on the MCX took just 10 days. This is the fastest Rs 1-lakh a kg rise for the white metal ever, data shows.

 

In the international markets, silver prices zoomed nearly 12 per cent on Thursday to cross the $118 an ounce (oz) mark. In the last 30 days alone, prices have risen around 50 per cent fuelled by geopolitical concerns, tariff wars amid supply-related concerns. 

 

 

The rise in gold (up over 9 per cent in international markets to $5,558 an ounce) and silver prices on Thursday comes after the outgoing Fed Chair Jerome Powell kept interest unchanged in the recently concluded meeting. US 10-year bond yields jumped initially to 4.897 per cent and cooled off later. 

 

What stood out in his statement, according to Apurva Sheth, Head of Market Perspectives and Research at SAMCO Securities, was shrugging off Fed's credibility concerns since the precious metals prices were rallying relentlessly for months while yields stayed elevated. 

 

“The rally, especially in gold, does indicate some sense of concerns about Fed's independence and counterparty risk. The S&P500 to Gold ratio dropped 20 per cent in January to hit its lowest level since October 2013. This indicates that trust in financial assets is eroding rapidly. Market participants are preferring hard assets like commodities over soft assets like bonds and stocks,” Sheth said.

 

More headroom

 

Despite the sharp run, analysts expect silver prices to continue their upward march amid intermittent corrections, which they feel will be bought into by investors.

 

Tariffs shape prices, margins, and growth prospects across the world economy. When the legal and political path remains unclear, investors protect purchasing power, and silver becomes a natural destination for that demand.  Beyond macro and politics, silver benefits from powerful real-economy fundamentals. 

 

The rally in silver, said Nigel Green, chief executive officer of deVere Group, a global consulting firm that has $14 billion under advisement, has significant room to run. Structural demand, constrained supply, and a global investment climate shaped by policy uncertainty, he believes, point to far higher prices. Volatility, he adds, comes with any major repricing, and sharp swings should be expected. Yet direction matters more than short-term noise. 

 

"Our projection places silver at $200 per ounce by the end of this year (up 70 per cent from the current levels), and that outlook reflects market dynamics already in motion. Confidence in monetary stewardship matters. When independence comes into question, investors turn to stores of value that stand apart from political influence. Silver gains in exactly those conditions," Green said.

 

MCX Silver, said Ponmudi R, CEO of Enrich Money, continues to display high-beta outperformance after a strong breakout, absorbing every minor correction with ease. The rising channel, he said, remains steep and firmly intact, with the 20-day EMA near Rs 377,630 level acting as strong dynamic support. 

 

“A sustained trade above Rs 407,456 level will keep the momentum decisively bullish in silver. Immediate upside targets are placed at Rs 408,000 – Rs 415,000, with scope to extend toward Rs 417,000 – Rs 425,000 over the coming months. Any dip toward the Rs 350,000 – Rs 360,000 zone should continue to be viewed as a strong accumulation opportunity within the prevailing uptrend,” Ponmudi said.