Gold and silver prices on the Multi Commodity Exchange of India (MCX) declined on Thursday, tracking weakness in international bullion markets. The fall came after the US Federal Reserve delivered a widely expected quarter-point interest rate cut but adopted a more cautious stance on further easing than markets had anticipated.
The Fed signaled two more reductions this year but only one in 2026, tempering expectations of a more aggressive easing cycle next year.
Both gold and silver have witnessed a sharp rally in recent months, with domestic prices hitting record highs. Over the past year, prices of the two precious metals have surged by nearly 50%.
Recently, MCX silver rate touched a historic peak of over ₹1,30,000 per kg, a level widely projected by analysts. The next significant milestone is ₹1,50,000 per kg, which experts believe could be achievable in the long term.
In the near term, however, analysts expect silver prices to undergo a correction, offering opportunities for accumulation as the broader bullish outlook remains intact.
Will silver price hit ₹1,50,000 level this year?
Jigar Trivedi, Senior Research Analyst at Reliance Securities, noted that silver prices extended losses on the Fed’s cautious tone but maintained a strong long-term outlook.
“Robust industrial demand from solar, electric vehicles and electronics, alongside supply constraints, continues to provide underlying support for silver prices,” Trivedi said.
“In the short term, MCX silver price for December may drop to ₹1,20,000 – ₹1,18,000 per kg. Nonetheless, silver price may advance to ₹1,40,000 per kg by the year-end. Having already appreciated 44% year-to-date, we do not rule out the possibility of a technical correction,” he added.
Ajay Kedia, Director of Kedia Advisory, highlighted that gold and silver prices have already factored in positive triggers, including Fed rate cuts, tariff uncertainties, and geopolitical tensions.
“We may now see silver prices correct in the short term before scaling to new highs. Prices are expected to fall 10–12% in the near term. However, the long-term structure remains strong, supported by robust industrial demand, improving global growth, a falling gold-silver ratio, and rising ETF inflows,” Kedia said.
Kedia expects MCX silver rate to touch ₹1,50,000 per kg by 2026. In the international market, he sees near-term support at $37.40 per ounce and resistance at $45. On MCX, he places near-term support at ₹1,10,500 and resistance at ₹1,34,000 per kg.
Looking ahead to the festive season, Kedia added, “This Diwali, we expect gold and silver prices to be around 5% lower from current levels. MCX gold is likely to trade near ₹1,05,000 per 10 grams, while silver could hover around ₹1,12,000 per kg.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
