Silver traded flat but slightly in the red on Thursday, December 18, amid profit booking at record highs and a mild uptick in the US dollar ahead of the key US CPI inflation print.
While dovish Federal Reserve signals continued to support precious metals, the strength in the dollar kept gains in check, even as silver hovered near record high levels. The metal has rallied sharply through November, driven by supply tightness, rupee weakness and rising expectations of a December rate cut.
On the Multi Commodity Exchange (MCX), silver March futures were down 0.47% at ₹2,06,451 per kg. In the previous session, silver hit a fresh record high of ₹2,07,833 and closed 5% higher at ₹2,07,760.
In the international market, spot silver rose 0.2% to $66.44 an ounce, after touching a record $66.88 in the previous session. The metal is now up 120% so far in 2025, significantly outperforming gold’s 65% gain, supported by firm industrial demand, strong investment flows and tightening global inventories.
Gold also softened in early trade. MCX gold February futures were down 0.20% at ₹1,34,619 per 10 grams. In the global market, spot gold slipped 0.2% to $4,332.29 an ounce as of 0256 GMT, after a sharp rise of more than 1% late Wednesday. US gold futures were also down 0.2% at $4,364.70.
Among other precious metals, platinum surged 3.6% to $1,966.0, its highest level in more than 17 years, while palladium gained nearly 1% to $1,663.0, marking a near three-year high.
Silver Outlook: Analysts predict further upside
Silver’s explosive rally is accelerating, with analysts now signalling the potential for even higher prices as the metal climbs into territory never seen before. After breaking decisively above $65 per ounce, silver extended gains past $66, driven by tightening global supply, rising safe-haven demand and expectations of US Federal Reserve rate cuts in 2026. The surge has placed silver firmly at the centre of the commodities conversation, with experts calling this the beginning of a new structural uptrend.
Aamir Makda, Commodity & Currency Analyst at Choice Broking, said the breakout marks a turning point for the precious metal. “Crossing the $65 threshold marks the dawn of a new era for silver, and this milestone signals that the future belongs to tangible, critical and rare commodities that underpin long-term industrial growth,” he said. Makda added that the rise in US unemployment to 4.6% increases the probability of Fed rate cuts next year, making non-yielding assets such as silver increasingly attractive.
Silver’s fundamental backdrop remains exceptionally tight. The metal is in its fifth straight year of supply deficit, just as global demand strengthens from sectors ranging from solar energy to electronics manufacturing. A weaker Indian rupee has further accelerated domestic silver prices on the MCX, where futures have surged above ₹205,000 per 10 grams, lifting year-to-date gains to nearly 134%.
Makda added that technical charts continue to support further upside. Immediate support sits at the 20-DEMA near ₹182,300, and “traders should look for buy-on-dips opportunities if silver corrects between 3% and 5%, as the broader momentum strongly favours the bulls,” he said.
Kaynat Chainwala, AVP – Commodity Research at Kotak Securities, said the rally is being reinforced by powerful structural forces. “Silver breaking above $66 for the first time ever reflects a perfect storm of tight physical supply, strong ETF inflows, rising safe-haven appetite and the growing likelihood of US rate cuts—all intensified by China’s expected silver export restrictions from 2026, which could put the global market under severe strain,” she noted.
Spot silver’s 120% YTD gains have far outpaced gold’s 65%, driven not only by scarcity but by its increasingly strategic role in the green-energy transition. With the metal now listed as a US critical mineral, analysts expect silver’s long-term target trajectory to keep rising, supported by structural deficits, geopolitical risks and accelerating industrial demand.
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.
