Silver crosses ₹3 lakh per kg; rally strong but correction risks loom

Silver price today:  Silver prices have climbed past the ₹3 lakh per kilogramme mark on the MCX, extending their rally as strong global demand, heightened geopolitical uncertainty and sustained safe-haven buying underpin the white metal. 

 

The move has been further supported by renewed trade worries after the United States threatened to impose fresh tariffs on several major European trading partners, with proposed levies starting at around 10 per cent and potentially rising to 25 per cent if certain conditions are not met.

 

The tariff threat, tied to a dispute over control of Greenland and broader trade tensions, has rattled markets and reinforced precious metals’ appeal as a hedge against economic instability.

 

 

On the Multi Commodity Exchange (MCX), the March 5, 2026 silver futures contract was trading slightly above ₹3 lakh per kg, while near-month contracts for May and July have also edged closer to – and in some cases crossed – the ₹3 lakh level. The price action reflects aggressive positioning by traders amid heightened volatility in global commodity markets.

 

The rally in domestic prices has been underpinned by a mix of factors, including expectations of US interest-rate cuts, persistent geopolitical tensions and robust industrial demand from sectors such as solar power, electric vehicles and electronics. Silver’s dual role as both an industrial metal and a safe-haven asset has continued to draw interest from institutional as well as retail investors.

 

Analysts said the broader trend remains bullish despite intermittent profit-taking. Ponmudi R, CEO of Enrich Money, said silver continues to trade in a strong structural uptrend. “COMEX silver remains resilient near the $93 per ounce zone after hitting highs around $94.30. Prices are holding well above key moving averages post-breakout, indicating sustained buyer control,” he said.

 

According to Ponmudi, structural demand from solar energy, EVs, artificial intelligence and electronics, along with safe-haven flows, continues to underpin silver’s longer-term strength. “While recent price action reflects some near-term profit-taking, the broader outlook remains constructive. The $85-$88 band may act as a short-term consolidation zone, while a breakout above $94-$96 could accelerate momentum toward $97-$100 and higher,” he said.

 

On the domestic front, he said MCX silver remains firmly placed within a bullish channel. “Sustained trade above ₹2,95,000 keeps the upside momentum intact. A decisive breakout beyond ₹3,05,000 could open targets toward ₹3,15,000, while dips toward ₹2,85,000 are likely to attract buying interest,” he added.

 

However, some experts caution that prices at current levels may not be sustainable in the near term. G Chokkalingam, founder and head of research at Equinomics Research, said the sharp rise in silver prices has already started affecting profitability in the solar industry. He added that higher prices could lead to increased resale volumes and prompt existing mines to maximise output, raising the risk of a 10-20 per cent correction in the short term.

 

With volatility expected to persist, traders are closely watching whether silver can sustain levels above ₹3 lakh per kg or whether profit-taking leads to a near-term pullback after the sharp rally.     

Disclaimer: The views or investment tips expressed by the analysts in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.