Silver rates jumped 2% to hit their fresh record high near ₹1,92,000 per kg on the MCX in intraday trade on Wednesday, December 10, amid a rally in gold prices. MCX silver March contracts hit a record high of ₹1,91,800 per kg while MCX gold February contracts rose to an intraday high of ₹1,30,502 per 10 grams during the morning session on Wednesday.
Spot silver prices have surged over 108%, while spot gold has jumped 68% this year so far. On December 31 last year, spot silver prices were ₹85,851 per kg; on December 9 this year, they were at ₹1,78,861 per kg. Similarly, domestic spot gold was ₹75,913 per 10 grams on December 31, 2024, and on December 9 this year, it was at ₹1,27,762.
Gold and silver prices have been rising this year on increased geopolitical tensions, concerns over the economic impact of US tariffs, central bank buying, and heavy inflows into exchange-traded funds (ETFs).
Can silver prices rise to the ₹2 lakh mark in December?
Experts believe MCX silver can top the ₹2 lakh mark or may rise to even the ₹2,10,000 per kg level by the end of this year due to increased demand and rate cut hopes.
Industrial demand remains robust. India is buying, China is exporting, and supplies are tight while demand stays firm.
“Not just ₹2 lakh— ₹2.10 lakh is also possible by December-end. With FIIs and global investors closing their books for the financial year, there may be some profit booking, but the undertone remains positive,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Moreover, the gold-to-silver ratio is around 68–69, the lowest in 3–4 years. This is another bullish indicator for silver.
The only immediate event to watch is the US Federal Reserve meeting, especially the economic projections and the dot plot.
Trivedi expects three rate cuts next year. But he underscored that if the dot plot signals only one or two cuts, there could be a sharp correction in gold and silver.
“Considering fundamentals, expectations around Donald Trump, and the likelihood that he will announce a new Fed Chair by the end of this month—and take charge from March 26—we still expect three rate cuts in 2026, which is supportive for bullion. In the first half of next year, silver prices could even move to $65,” said Trivedi.
However, the rally in bullion could also see some occasional profit booking. Prices may remain range-bound with time-based consolidation, given the steep rise in a short period. But the overall trend remains positive.
“Spot silver internationally has rallied 112% year to date, so a 20–40% correction is possible. But Indian investors who missed the rally will likely buy aggressively on dips. So investment demand will stay strong,” said Trivedi.
Geopolitical risk has eased compared to six months ago, but there is still no sign of a peace deal in the Russia–Ukraine conflict. Moreover, US President Donald Trump’s stance on US tariffs is highly unpredictable, which is again a key positive for gold and silver.
Anuj Gupta, A SEBI-registered analyst, expects MCX silver prices to hit the ₹2 lakh mark by the end of this year amid occasional profit booking.
“Silver can be at the ₹2 lakh level by the end of this month. There could be some profit booking due to the steep rise in prices. The range for the metal may be ₹1,80,000 to ₹2,00,000 per kg this month,” said Gupta.
Aksha Kamboj, Vice President at India Bullion and Jewellers Association (IBJA) and Executive Chairperson of Aspect Global Ventures, believes the metal remains supported by stable cues in global manufacturing but sees traders adopting a more measured stance ahead of fresh macro updates.
“With the sentiment moderately constructive, silver could see a steady range while markets assess how industrial demand is likely to evolve this week,” said Kamboj.
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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.
