Silver Makes New High In MCX, Crossed Rs 1 Lakh Per Kg

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.