Silver price on Feb 27: White metal surges Rs 8,300/kg, nears Rs 2.7 lakh as geopolitical tensions lift safe-haven demand

Silver prices staged a sharp rally on February 27, surging Rs 8,300 per kilogram and approaching the Rs 2.7 lakh mark, as geopolitical tensions and tariff uncertainties triggered strong safe-haven and industrial buying interest. While gold also edged higher, gains in the yellow metal were comparatively modest amid heightened volatility in global commodity markets.

On the Multi Commodity Exchange (MCX), silver futures for March 2026 delivery climbed ₹8,340, or 3.2%, to settle at ₹2,68,009 per kilogram. The move places domestic silver prices within striking distance of the ₹2.7 lakh psychological threshold. In contrast, gold futures for April 2026 delivery rose ₹482, or 0.3%, to ₹1,60,191 per 10 grams.

The rally unfolded against a backdrop of geopolitical uncertainty involving Iran, the United States, Pakistan, and Afghanistan, along with continued concerns around U.S. tariff policy. Investors closely tracked developments related to nuclear negotiations between Washington and Tehran, as well as fresh sanctions targeting entities linked to Iran’s oil and weapons exports.

Market participants said safe-haven flows intensified after reports of a U.S. troop buildup in the Middle East ahead of talks in Geneva, amplifying the geopolitical risk premium in precious metals.

Ponmudi R, CEO of Enrich Money, noted that COMEX silver is currently trading in the $85–$90 range after retracing from earlier highs above $121. Despite the correction, he said the broader bullish structure remains intact.

“Strong buying interest is visible in the $70–$75 support zone. A sustained recovery above $92–$96 may re-establish upward momentum toward $100–$105. Industrial demand fundamentals and supply constraints continue to support the medium- to long-term outlook, though short-term volatility may persist,” he said.

On the domestic front, Ponmudi observed that MCX silver futures are consolidating in the ₹2,50,000–₹2,60,000 band. “The broader long-term bullish bias remains valid, though near-term price action reflects corrective undertones. Key structural support is positioned at ₹2,25,000–₹2,35,000. A sustained hold above this zone could pave the way toward ₹3,00,000–₹3,25,000 in the medium term. A decisive break below support, however, may intensify short-term pressure,” he added.

Renisha Chainani, Head of Research at Augmont, said both gold and silver hovered near four-week highs as safe-haven demand strengthened amid geopolitical tensions and trade policy uncertainty.

She noted that silver has already achieved the $90 target, equivalent to roughly ₹2,66,000 in domestic terms. Prices are now gradually approaching the next resistance levels at $92 (around ₹2,72,000) and $93 (around ₹2,75,000), indicating scope for further upside if global cues remain supportive.

However, some analysts flagged the possibility of intermittent profit booking. Manoj Kumar Jain of Prithvi Finmart said gold and silver are witnessing bouts of profit-taking, although markets expect Iran may not fully agree to U.S. conditions.

He added that tensions between Pakistan and Afghanistan, along with profit-taking in the dollar index, supported precious metals at lower levels. “Both metals are experiencing high price volatility, but silver may hold support at $78 per troy ounce, while gold could sustain support at $5,055 per troy ounce on a closing basis this week,” Jain said.

With global risk factors still fluid, traders expect continued volatility in silver, even as the broader structural trend remains supportive.