Silver Prices Surge Over 4% on MCX, Reach ₹2.8 Lakh - A Buying Opportunity?
Indian Silver Market Update
MCX Silver May Futures Rise 4% to ₹2,78,339 per kg
On March 10, the MCX silver market experienced a significant surge in intraday trade, with MCX silver May futures rising by more than ₹11,000, or 4%, to reach ₹2,78,339 per kg. This increase is attributed to healthy spot demand, the weakening of the dollar, and persisting geopolitical risks.
Silver Price Volatility
Read also: Expert Portfolio Manager Raja Venkatraman Names Top Investment Picks for June 4
Silver prices have been highly volatile this year, with a gain of over ₹42,000, or 18%, in the spot market so far. In contrast, 2025 saw a stellar gain of over 165%. The white metal's price outlook is expected to remain volatile due to its dual drivers: investment demand and strong industrial usage in sectors such as solar energy, electric vehicles, and electronics.
Gold and Silver Price Outlook
For the medium term, both gold and silver are poised for healthy gains due to geopolitical uncertainties and safe-haven demand. According to Vandana Bharti, Head of Commodity Research at SMC Global Securities, the ongoing conflict involving the U.S., Israel, and Iran has heightened geopolitical risks, supporting safe-haven assets like gold and silver.
Price Projections
- MCX silver is expected to trade to ₹3,15,000 per kg by June 2026, with support at ₹2,35,000, according to Vandana Bharti.
- Comex silver is expected to trade in the range of $80 to $110, with MCX silver in the range of ₹2,60,000 to ₹3,10,000 by the end of June, as per Jigar Trivedi, Senior Research Analyst at IndusInd Securities.
- Silver has an immoderate resistance at ₹3,00,000 and ₹3,20,000, with supports near ₹2,30,000 and ₹2,40,000, according to Manav Modi, Previous Metals Analyst- Commodities at Motilal Oswal Financial Services.
Portfolio Allocation
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, according to Manav Modi. The gold-silver ratio is likely to remain broadly in the 55-65 range for some time.
Investor Takeaway
Investors may consider silver as a buying opportunity due to its potential for healthy gains in the medium term.
More in Market
Expert Portfolio Manager Raja Venkatraman Names Top Investment Picks for June 4
MarketSmith India's 4 June Stock Recommendations
Foreign Investors Outpace Domestic Mutual Funds in Rupee Returns Despite Record Withdrawal of $27 Billion
