MCX and Hindustan Zinc Shares Rise on Silver Price Gains, ETFs See 1% Increase

Silver Prices Surge Amid Precious Metals Rally

Silver prices experienced a significant upswing on Wednesday, resulting in a 3% increase in stock prices and over 1% gain in ETFs across various fund houses. The surge was led by Multi Commodity Exchange of India, whose shares rose by over 3% to around Rs 2,473 in early afternoon trade.

Hindustan Zinc shares also climbed 2.8% to Rs 614, extending gains amid firm sentiment around non-ferrous and precious metals demand. The stock has now increased by over 51% on a one-year basis.

Silver ETFs logged gains of over 1% across fund houses, including ICICI Prudential AMC, Nippon India Mutual Fund, SBI Mutual Fund, and Tata Asset Management. Gold ETFs also edged up, with a more pronounced move in silver-linked products.

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The rally in equities and ETFs reflects a broader strengthening trend in precious metals. According to Motilal Oswal Financial Services' latest Precious Metals Quarterly Report, gold is being driven by rising geopolitical stress, tightening physical supply, and a gradual erosion of confidence in global monetary frameworks. Gold's role as non-sovereign money is gaining prominence as fiscal pressures mount and questions around monetary independence intensify.

Silver continues to draw support from both investment and industrial channels. Geojit Investments noted that the forces that lifted silver prices last year remain firmly in place in 2026, including strong industrial demand from rapid digitalisation, artificial intelligence adoption, and the expansion of data centres and IT infrastructure. These trends are boosting demand for silver-intensive electrical and computing systems, even as physical supply remains tight.

Geojit also pointed to ongoing geopolitical instability, uncertainty around U.S. trade policy, and concerns over central bank independence as factors sustaining bullion's safe-haven appeal. Strength in gold is helping cushion downside risks for silver, although near-term price volatility is likely to stay elevated.