Hindustan Zinc share price extended its winning run to the second consecutive session on Monday, January 12, surging 4.5%, as silver prices scaled fresh record highs amid renewed geopolitical tensions and a sharp retreat in the US dollar.
Hindustan Zinc share price opened the session higher at ₹624.8 and maintained the momentum to scale the day’s high of ₹632.55 apiece. Considering today’s high, the metal stock has gained 57% from the August lows.
Silver contributed 41% to HZL’s earnings before interest and taxes (EBIT) in H1FY26, up from about 28% in FY23. A jump in prices bodes well for the company’s operating performance.
Silver prices top ₹2.65 lakh
The record-breaking rally in silver prices, which powered the stock to a 38% surge in 2025, has extended its momentum into early 2026, barring a few pullbacks. Prices have hit multiple record highs, crossing the ₹2.65 lakh mark in today’s session.
After rallying 7% last week, the March delivery silver futures contract on MCX kicked off the week with a massive jump of ₹12,665 per kilogram, hitting a ₹2,65,390″>fresh record high of ₹2,65,390. This also contributed to a 12.5% surge in the first nine trading sessions of 2026.
In recent sessions, silver prices witnessed profit booking but showed a sharp recovery in subsequent trading sessions, continuing to build on the massive 170% rally recorded in 2025—far outperforming gold—following a historic short squeeze that gripped the market in October amid US tariff fears and rampant investment demand.
In the international market, spot silver prices strengthened by as much as 6% to a fresh peak of $84.58 per ounce, contributing to an 18% surge so far in January, after rising 148% in 2025.
Domestic brokerage firm Motilal Oswal expects the rally in silver prices to continue in 2026, setting a target of ₹3,20,000 per kilogram for MCX silver, while placing the risk-negation level at ₹1,40,000.
In the international market, the brokerage expects silver prices on COMEX to reach $30 per ounce. The brokerage said silver’s strength is likely to be front-loaded in the first half of 2026 amid policy uncertainty and currency volatility.
However, whether the second half sees consolidation or a continuation of the rally will depend on global growth cues, bond market stability, and the credibility of monetary policy. The brokerage continues to maintain a “Buy on Dips” stance on silver for 2026.
Renewed geopolitical tensions and a softening US dollar support the silver rally
The safe-haven appeal of precious metals appears to have been reinforced by geopolitical tensions around China–Japan trade relations, the US capture of Venezuela’s leader, fresh tariff-related tensions, and a criminal probe into Federal Reserve Chair Jerome Powell.
In the Middle East, tensions in Iran have deepened, with citizens filling the streets of the national capital, Tehran, as anti-government protests intensified on Saturday night amid an internet shutdown in the country and a crackdown by the Ayatollah Ali Khamenei-led government, Mint reported earlier.
Meanwhile, the US dollar fell the most in three weeks on Monday after US prosecutors opened a criminal investigation into Federal Reserve Chair Jerome Powell, adding to tensions with the Trump administration, Reuters reported.
The dollar index, which measures the greenback’s strength against a basket of six currencies, was last down 0.2% at 99.011, snapping a five-day winning streak and making dollar-priced commodities cheaper for holders of other currencies.
The recent US jobs data delivered mixed signals on the health of the world’s largest economy, providing little clarity on the future path of US Federal Reserve rate cuts.
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