Silver price hits all-time high, crosses Rs 1.11 lakh; here's why

Silver prices in India have soared to unprecedented levels, with the Multi Commodity Exchange (MCX) recording rates surpassing Rs 1.11 lakh per kilogram on Friday. The silver price hit a record high of Rs 1,11,750 per kg on MCX. 

In the spot market, silver is trading at ₹109.90 per gram, equivalent to ₹1,09,900 per kilogram, according to data from Goodreturns. The rally is driven by fresh buying activity from traders, as noted by Rahul Kalantri, Vice President of Commodities at Mehta Equities. He stated, "Investors are seeking safety amid fresh tariff threats and policy risks from the US President’s steep import tariffs and calls for deep rate cuts are stoking inflation fears. If silver manages to close above the Rs 1,10,000 today, it may trigger a fresh bullish rally targeting Rs 1,14,500 and subsequently Rs 1,17,000.”

The price of silver in India typically aligns with international rates and is influenced by the rupee-dollar exchange rate. A weakening rupee against a stable dollar price can result in higher costs for Indian buyers. Aksha Kamboj, Vice President of the India Bullion and Jewellers Association, commented on the situation by saying, "Trade tensions and new tariff threats have unsettled risk assets. Some investors are moving to safe-haven assets like gold and silver." On the MCX, silver is showing support at ₹1,08,480 per kg, with resistance at ₹1,10,700 per kg, according to Kalantri.

Globally, spot silver witnessed a 0.4% increase, reaching $37.17 per ounce, as per a Reuters report. This rise is concurrent with the observed price movements in India. Kalantri reiterated, "Investors are seeking safety amid fresh tariff threats and policy risks from the US President’s steep import tariffs and calls for deep rate cuts are stoking inflation fears." Spot traders are anticipating further price increases if international silver prices remain firm and the rupee continues to weaken.