Silver prices witnessed a powerful surge on Friday, climbing nearly 4% to touch a fresh all-time high of ₹3,39,927 on the Multi Commodity Exchange (MCX). The sharp rise reflects growing investor demand for safe-haven assets amid a weakening US dollar, escalating geopolitical tensions, and increasing expectations of further monetary easing by the US Federal Reserve.
The rally in silver came alongside a strong move in gold prices, which also scaled a new lifetime high in the domestic market. MCX gold rose to ₹1,59,226 per 10 grams, underlining the broader strength across precious metals as investors sought protection against global uncertainty and currency volatility.
International markets mirrored the bullish sentiment. Silver jumped nearly 2.5% to trade around $98.60 an ounce, while gold hovered close to $4,956 an ounce. Platinum also advanced, briefly touching a record level of $2,690 an ounce before giving up some gains. The gains were largely supported by a sharp decline in the US dollar index, which has fallen about 0.8% this week, making dollar-priced commodities more attractive to buyers using other currencies.
Geopolitical developments continue to influence market sentiment. Although trade-related concerns between the United States and Europe have eased somewhat, fresh uncertainty has emerged following new security arrangements involving Greenland and NATO. These developments have added to investor caution, pushing more funds toward traditional safe-haven assets such as gold and silver.
Attention is also firmly on US monetary policy. Markets are closely tracking signals related to the appointment of the next Federal Reserve chair, with expectations building around a more dovish policy stance. After multiple interest-rate cuts, investors are increasingly betting on additional easing later this year. Lower interest rates typically benefit non-yielding assets, lending further support to the ongoing rally in precious metals.
Despite the sharp rise, market participants believe the silver rally may enter a phase of consolidation in the near term. Analysts point out that historically, steep gains in silver are often followed by periods of sideways movement rather than abrupt reversals. Such pauses are generally viewed as healthy corrections within a broader upward trend, especially when driven by strong fundamentals.
Experts note that silver continues to enjoy structural support from persistent market deficits, steady investment demand, and its growing industrial use, particularly in sectors such as renewable energy and electronics. These factors suggest that any short-term price dips could attract buying interest rather than trigger sustained selling pressure.
Silver is currently seen holding strong support around the ₹3,00,000 level. As long as prices remain above this zone, analysts believe the metal retains the potential to move higher toward the ₹3,45,000 range in the coming weeks. Gold, meanwhile, is expected to find solid support near ₹1,49,000 per 10 grams, with the psychological ₹1,60,000 level remaining a key upside target.
While the long-term outlook for precious metals remains constructive, experts caution investors against complacency. Elevated prices and heightened volatility call for a measured investment approach. Still, silver’s dual role as both a safe-haven asset and an industrial metal continues to make it an attractive option at a time when global economic and political uncertainties remain high.