MUMBAI, Jan 14, 2026, 20:20 IST
- MCX silver surged past ₹2.90 lakh/kg, while gold hit a new high of ₹1.43 lakh per 10 grams
- Spot silver surged to a record $92.23/oz, while gold reached $4,641.40/oz amid growing bets on rate cuts
- Analysts caution the silver rally could turn sharply; retail buying is ramping up
Silver prices in India surged to fresh highs on Wednesday, with the March contract on the Multi Commodity Exchange (MCX) surpassing ₹2.90 lakh per kilogram, inching closer to the ₹3 lakh threshold. Gold on MCX also hit a record ₹1,43,017 per 10 grams. Livemint
The surge matters now because it’s moved beyond just jewellery and industry. Investors are treating precious metals as both a rate play and a hedge, wagering that U.S. interest rates will drop as inflation eases and uncertainty remains.
The pace grabbed all the attention. The MCX March silver contract surged to ₹2,90,800, jumping from ₹2 lakh to almost ₹3 lakh in just weeks, Mint reported.
Overseas, the surge is even more pronounced. Spot gold soared to an all-time high of $4,641.40 an ounce, while spot silver hit a record $92.23, Reuters reported. Other precious metals also edged higher. “All roads are leading to gold and silver,” said Alex Ebkarian, chief operating officer at Allegiance Gold. Reuters
U.S. inflation data gave markets a boost. Core consumer prices climbed 0.2% in December and were up 2.6% compared to last year. The headline CPI increased 0.3% month-over-month, hitting 2.7% year-on-year, according to a Reuters report. Reuters
Lower rates usually boost bullion since it doesn’t yield interest. Investors are also eyeing the Federal Reserve amid fresh debates about its independence and rising geopolitical tensions, factors that have kept demand steady for assets considered safe havens.
The shifts are pushing exchanges to act. CME Group, owner of the COMEX precious metals contracts, announced it will tweak margin requirements—the cash traders need to post to maintain positions—to tackle the recent volatility, Reuters reported. Reuters
Yet the very momentum attracting buyers can backfire quickly. Shantanu Bhargava, CEO of HNI Digital Advisory and Managed Solutions at Neo Wealth Management, pointed out silver’s “dual role” as both an industrial commodity and a monetary asset. That mix makes it a high-beta play — it can spike beyond gold’s gains, then drop just as sharply.
Bhargava highlighted futures open interest hitting 165,805, up 18% from a year ago, alongside a striking 238% surge in retail micro contracts—clear signs of late-cycle positioning. He set a “fundamental floor” near $61 an ounce under stress but noted that previous liquidity flushes have pushed prices as low as $25-$30.
Other traders echoed the sentiment, though more bluntly. Hugo Pascal, a precious metals trader at InProved, said technical indicators were “screaming correction” despite ongoing bullish options activity, warning investors to prepare for sharp countermoves.
Retail chatter is heating up. Robert Kiyosaki, the “Rich Dad Poor Dad” author, said silver is “peaking” and expects a sharp pullback. Still, he plans to keep buying silver until it hits $100 an ounce and then “wait.” Indiatimes
Silver’s surge wasn’t driven by fear alone. The metal soared nearly 150% last year, boosted by a short squeeze—where traders betting against it had to scramble to buy back—and tight supply in London, the Mint report says.
The key question now: will these elevated prices curb physical demand, particularly in India? Traders are eyeing upcoming U.S. data and central bank moves, yet silver’s own swings might steal the spotlight.
