Silver price today: Silver jumps 2% on MCX, surges above Rs 2.65 lakh, key resistance at Rs 2.72 lakh
Silver prices surged on MCX on February 25, tracking firm global cues and renewed safe-haven buying amid geopolitical and trade uncertainty. Analysts say tight physical supply, structural industrial demand from AI and electronics, and key technical levels could keep volatility elevated but bias positive.
- Feb 25, 2026,
- Updated Feb 25, 2026 2:36 PM IST
Silver prices opened sharply higher on February 25, tracking firm global cues and renewed safe-haven buying. On the Multi Commodity Exchange (MCX), March silver futures surged Rs 5,200, or 2%, to open at Rs 2,65,944 per kilogram compared to the previous close of Rs 2,60,744. Internationally, exchange-traded fund (ETF) flows signalled improving sentiment. Physical holdings in the iShares Silver Trust have risen nearly 2% so far in February after a 5.6% decline in January. Total holdings stood at around 508 million troy ounces in the week ended February 20, reflecting a rebound in investor positioning.
The Indian Bullion and Jewellers Association (IBJA) pegged 999 purity silver at ₹2,62,912 per kilogram in evening trade on February 24, down 0.44% from the previous close, indicating some near-term volatility despite the broader upward bias.
Demand trends
According to The Silver Institute, global silver demand is expected to remain broadly stable in 2026. Stronger retail investment is projected to offset declines in jewellery, silverware and parts of industrial consumption. Physical investment demand is expected to rise 20% to 227 million ounces, reaching a three-year high. Global ETP holdings are estimated at 1.31 billion ounces.
Industrial fabrication is forecast to fall 2% to 650 million ounces -- a four-year low -- mainly due to reduced silver usage in photovoltaics (PV) as thrifting and substitution intensify. However, structural growth sectors such as data centres, AI-linked technologies and automotive electronics are expected to provide underlying support.
Jewellery demand may fall more than 9% and silverware demand about 17% in 2026, with high prices weighing heavily on India, while China is expected to see a rise in jewellery consumption.
Structural drivers
Geojit Investments Limited, in its February 24 report, said the forces that lifted silver in 2025 continue to underpin prices. It noted that “strong industrial demand driven by rapid digitalisation, AI expansion, and growth in data centres and IT infrastructure” is boosting silver-intensive applications.
At the same time, “tight physical supply, geopolitical instability, U.S. trade policy uncertainty, and concerns over Federal Reserve independence” are sustaining safe-haven appeal.
Geojit added that gold’s strength should cushion downside risks for silver, although volatility may remain elevated in the near term.
Physical tightness vs paper positioning
Harshal Dasani, Business Head, INVasset PMS, said silver is entering a sensitive phase where “physical fundamentals and paper positioning are sharply out of sync.”
He pointed out that COMEX registered inventories are near 87 million ounces, while March open interest stands around 188 million ounces — “paper claims are more than twice the immediately deliverable supply.”
Chinese exchange inventories across SGE and SHFE are around 800,000 kg, with domestic Chinese prices near $102 per ounce equivalent, signalling tight physical conditions. By contrast, India is trading near $87 with a discount, indicating softer local demand.
Dasani said the recent correction was “largely technical, driven by margin adjustments and forced deleveraging rather than a collapse in industrial demand.”
He emphasised that silver remains in structural deficit amid strong solar, electronics and EV-linked consumption, while mine supply growth is constrained. “Historically, such stress phases in silver have preceded powerful upside extensions rather than marking long-term tops,” he added.
Technical view and key levels
Aksha Kamboj, Vice President, IBJA, said: “Silver is easing slightly from the previous session after a strong rebound.” She added that profit-taking is visible, but “overall market sentiment remains positive due to improving industrial demand trends.”
According to Ajay Kedia, the outlook for MCX silver remains positive. Immediate resistance is seen at ₹2,72,100 per kg, while support lies near ₹2,62,730.
Silver outlook
With ETF inflows stabilising, structural industrial demand intact, and supply constraints persisting, silver appears to be navigating short-term volatility within a broader supportive framework. Analysts caution that high open interest and tight physical supply could keep price swings elevated, but the medium-term bias remains constructive.
Silver prices opened sharply higher on February 25, tracking firm global cues and renewed safe-haven buying. On the Multi Commodity Exchange (MCX), March silver futures surged Rs 5,200, or 2%, to open at Rs 2,65,944 per kilogram compared to the previous close of Rs 2,60,744. Internationally, exchange-traded fund (ETF) flows signalled improving sentiment. Physical holdings in the iShares Silver Trust have risen nearly 2% so far in February after a 5.6% decline in January. Total holdings stood at around 508 million troy ounces in the week ended February 20, reflecting a rebound in investor positioning.
The Indian Bullion and Jewellers Association (IBJA) pegged 999 purity silver at ₹2,62,912 per kilogram in evening trade on February 24, down 0.44% from the previous close, indicating some near-term volatility despite the broader upward bias.
Demand trends
According to The Silver Institute, global silver demand is expected to remain broadly stable in 2026. Stronger retail investment is projected to offset declines in jewellery, silverware and parts of industrial consumption. Physical investment demand is expected to rise 20% to 227 million ounces, reaching a three-year high. Global ETP holdings are estimated at 1.31 billion ounces.
Industrial fabrication is forecast to fall 2% to 650 million ounces -- a four-year low -- mainly due to reduced silver usage in photovoltaics (PV) as thrifting and substitution intensify. However, structural growth sectors such as data centres, AI-linked technologies and automotive electronics are expected to provide underlying support.
Jewellery demand may fall more than 9% and silverware demand about 17% in 2026, with high prices weighing heavily on India, while China is expected to see a rise in jewellery consumption.
Structural drivers
Geojit Investments Limited, in its February 24 report, said the forces that lifted silver in 2025 continue to underpin prices. It noted that “strong industrial demand driven by rapid digitalisation, AI expansion, and growth in data centres and IT infrastructure” is boosting silver-intensive applications.
At the same time, “tight physical supply, geopolitical instability, U.S. trade policy uncertainty, and concerns over Federal Reserve independence” are sustaining safe-haven appeal.
Geojit added that gold’s strength should cushion downside risks for silver, although volatility may remain elevated in the near term.
Physical tightness vs paper positioning
Harshal Dasani, Business Head, INVasset PMS, said silver is entering a sensitive phase where “physical fundamentals and paper positioning are sharply out of sync.”
He pointed out that COMEX registered inventories are near 87 million ounces, while March open interest stands around 188 million ounces — “paper claims are more than twice the immediately deliverable supply.”
Chinese exchange inventories across SGE and SHFE are around 800,000 kg, with domestic Chinese prices near $102 per ounce equivalent, signalling tight physical conditions. By contrast, India is trading near $87 with a discount, indicating softer local demand.
Dasani said the recent correction was “largely technical, driven by margin adjustments and forced deleveraging rather than a collapse in industrial demand.”
He emphasised that silver remains in structural deficit amid strong solar, electronics and EV-linked consumption, while mine supply growth is constrained. “Historically, such stress phases in silver have preceded powerful upside extensions rather than marking long-term tops,” he added.
Technical view and key levels
Aksha Kamboj, Vice President, IBJA, said: “Silver is easing slightly from the previous session after a strong rebound.” She added that profit-taking is visible, but “overall market sentiment remains positive due to improving industrial demand trends.”
According to Ajay Kedia, the outlook for MCX silver remains positive. Immediate resistance is seen at ₹2,72,100 per kg, while support lies near ₹2,62,730.
Silver outlook
With ETF inflows stabilising, structural industrial demand intact, and supply constraints persisting, silver appears to be navigating short-term volatility within a broader supportive framework. Analysts caution that high open interest and tight physical supply could keep price swings elevated, but the medium-term bias remains constructive.