Silver hits record, pips crude oil prices for 1st time in 40 years; new era, say analysts

Silver futures hit fresh lifetime highs on the Multi Commodity Exchange (MCX) on Wednesday, tracking record prices on COMEX. This is a day after the while metal breached crude oil prices for the first time in 40 years. The fresh rally followed a weaker-than-expected US jobs report, which reinforced market expectations of two interest rate cuts in 2026. Silver prices were supported by strong industrial demand for the white metal, particularly from renewable energy applications, grid infrastructure, and artificial intelligence-linked technologies, market participants said.

Globally, it hit the $66-threshold mark for the first time today. It is the dawn of a new era for Silver, said Aamir Makda, Commodity & Currency Analyst at Choice Broking.

"As silver prices overtake crude oil for the first time in 40 years, the market is sending a clear message: the future belongs to the tangible, the critical, and the rare. This incline in silver has triggered by recent employment numbers from US which shown that unemployment rate has risen to 4.6 per cent, which will make Federal Reserve to cut its Interest rate in 2026, making non-yielding assets like silver more attractive," Makda said.

On MCX, silver for March delivery gained 4 per cent to Rs 2,05,410 per kg. It hit a record high of Rs 2,06,111 per kg earlier today. On COMEX, the March contracts were up about 5 per cent at $66.41 per ounce, after touching a record high of $66.65 per ounce.

What sets silver apart is its wide application in industrial uses, said V K Vijayakumar, Chief Investment Strategist, Geojit Investments. In the modern sunrise industries like EVs, solar energy, manufacture of electronic devices mobile phones etc silver is used, he said.

'The impressive growth of these industries have pushed up the demand for silver. In the absence of corresponding increase in supply of this scarce metal, price has shot up. There can be some profit booking, but silver prices are likely to remain resilient,”

The impressive growth of these industries have pushed up the demand for silver. In the absence of corresponding increase in supply of this scarce metal, price has shot up, Vijayakumar said addinf that while there can be some profit booking, silver prices are likely to remain resilient.

"While near-term volatility is expected after such a sharp move, the broader structure points toward a potential extension toward $68–$70, supported by strong industrial demand and tight supply dynamics. Silver is currently stabilising near $64.10, which signals consolidation within strength rather than exhaustion. As long as prices sustain above $63, the broader uptrend remains firmly intact," said Ponmudi R, CEO of Enrich Money.

In a rare historical event, silver is now trading higher than a barrel of WTI crude oil at $66 per ounce against WTI's $56 a barrel. This inversion has not been seen since the late 1970s and early 1980s, signalling that the industrial metal is becoming as strategically important as energy, Makda said.

"Silver is already in its 5th consecutive year of supply-deficit. Adding to that, weakness in Indian rupee has accelerated prices of Dollar-denominated commodities. At current price, immediate support would be at 20-DEMA level placed at Rs 182,300. Traders should look forward for Buy-on-dips opportunity if price taking any correction of 3 -5 per cent in upcoming session," he added.

Rahul Kalantri, VP Commodities at Mehta Equities said silver has support at $63.20-62.75 and resistance at $64.20-64.75. In rupee terms, he sees support at Rs 1,96,450.