Silver prices witnessed an unprecedented surge on Monday, December 29, marking a historic milestone on the Multi Commodity Exchange (MCX). For the first time ever, the price of silver surpassed the ₹2,50,000 per kilogram mark in the domestic market.
Market Dynamics and Price Movements
The first trading session of the week on December 29 saw a dramatic increase in silver rates. On the MCX, silver successfully breached the ₹2,50,000 threshold. Simultaneously, the international market also recorded a significant uplift in silver prices, with rates exceeding $80 for the first time.
However, following this sharp ascent, a phase of profit-taking commenced, leading to a subsequent dip in prices. The March 5, 2026 expiry silver future contract on the MCX commenced trading at ₹2,47,194 per kilogram on Monday, December 29. This was a notable increase from its previous closing price of ₹2,39,787 on the MCX.
By 10:00 AM on December 29, silver on the MCX was trading at ₹2,48,982, indicating an approximate jump of ₹9,200 from the previous day’s close. Early trading hours on the MCX saw silver reach an intra-day high of ₹2,54,174.
Key Factors Driving the Silver Rally
Several factors have contributed to this substantial rise in silver prices. A primary driver is the consistently increasing demand from the industrial sector. Silver’s utility in applications such as solar panels, electric vehicles, and semiconductors has played a crucial role in bolstering its value. Currently, industrial demand accounts for roughly 60 percent of the global silver requirement.
Furthermore, the widening gap between the production and demand for silver is also a contributing factor to the upward price momentum. Macroeconomic elements, including a weakening US Dollar and signals from the US Federal Reserve hinting at potential interest rate reductions, have also provided market support. In this environment, investors are increasingly turning to safe-haven assets, directly influencing the price movements of both gold and silver on the MCX.
