Silver rate on the MCX jumped more than 4% in intraday trade on Tuesday, March 10, supported by healthy spot demand, dollar’s weakness, and persisting geopolitical risks.
MCX silver May futures rose by more than ₹11,000, or over 4%, to ₹2,78,339 per kg.
Silver prices have been volatile this year. Nevertheless, the white metal has gained more than ₹42,000, or 18%, this year so far in the spot market after a stellar gain of over 165% in 2025.
Gold and silver rates are in structural bull phases, though their key drivers differ slightly.
Gold is driven by safe-haven demand amid geopolitical tensions and geoeconomic uncertainties, central bank buying, and expectations around interest rate cuts.
On the other hand, silver benefits from both investment demand and strong industrial usage in sectors such as solar energy, electric vehicles, and electronics.
Silver price outlook
For the medium term, both gold and silver look poised for healthy gains due to geopolitical uncertainties and safe-haven demand. However, experts expect silver prices to remain volatile.
“The ongoing conflict involving the U.S., Israel, and Iran has heightened geopolitical risks in global markets, which typically support safe-haven assets like gold and silver. However, silver tends to experience higher price volatility because a significant portion of its demand is linked to industrial activity,” said Vandana Bharti, Head of Commodity Research, SMC Global Securities.
Bharti said if the precious metals cycle remains positive due to a weaker dollar and potential monetary easing, silver could outperform gold as the rally broadens.
“Currently, the gold–silver ratio is around 58–62. If easing policies, a weaker dollar, and strong demand persist, the ratio could gradually move toward 65–70 in 2026,” said Bharti.
“From an investment perspective, gradual accumulation of price corrections may be prudent. Under the above scenario, MCX silver could trade to ₹3,15,000 per kg by June 2026 with the support of ₹2,35,000,” Bharti said.
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, expects Comex silver to trade in the range of $80 to $110, and MCX silver may be in the range of ₹2,60,000 to ₹3,10,000 by the end of June this year.
According to Manav Modi, Previous Metals Analyst- Commodities at Motilal Oswal Financial Services, silver has an immoderate resistance at ₹3,00,000 and ₹3,20,000, and supports are near ₹2,30,000 and ₹2,40,000.
Modi underscored that while silver may still have room on the upside, the one-way rally seen last year may not repeat immediately, and prices could spend some time consolidating within a range.
Gold, in comparison, appears more stable in the current environment.
“From a portfolio perspective, maintaining a higher allocation to gold—around 70–75%—and 25–30% to silver may be more prudent in the near term. The gold-silver ratio is also likely to remain broadly in the 55–65 range for some time,” said Modi.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
