India’s bullion markets turned white-hot on Thursday, 11 December 2025, as silver prices smashed fresh lifetime highs and gold extended its rally, powered by a global wave of optimism after the US Federal Reserve delivered yet another interest rate cut.
From Multi Commodity Exchange (MCX) futures to physical markets tracked by the India Bullion and Jewellers Association (IBJA), silver prices logged sharp, broad-based gains in just 48 hours, while gold quietly moved higher alongside. [1]
Silver Hits New Lifetime High on MCX
On MCX, silver futures exploded to an unprecedented level during trade on 11 December:
- MCX Silver (March 2026 contract) jumped to around ₹1,95,400 per kg at about 8:15 pm IST, marking a new record high.
- This was a surge of ₹6,665 per kg, or roughly 3.5%, compared with the previous close of ₹1,88,735 per kg.
- During the session, the intraday low was around ₹1,89,908 per kg, underlining how quickly buyers stepped in at lower levels. [2]
Earlier in the day, silver had already hit a record in the morning session:
- MCX Silver (March) touched a high near ₹1,93,452 per kg, before stabilising around ₹1,93,300 per kg, still up about 2.4% by late morning. [3]
In other words, silver set multiple intraday records on the same day—first in the morning, then again in the evening—as buying momentum intensified across global and domestic markets.
Spot Silver Also at All-Time High in IBJA Rates
The rally was not limited to futures. Physical market benchmarks confirmed the historic move:
- IBJA evening price (5 pm) for silver climbed to about ₹1,88,281 per kg, the highest level ever recorded in the association’s dataset.
- This marked a single-day jump of roughly ₹1,931 per kg from the previous day’s ₹1,86,350 per kg. [4]
Zee News Hindi’s bullion round-up highlighted how silver has become about ₹10,000–₹11,000 more expensive within just two days, underscoring the speed and intensity of the price move across key cities and state bullion markets. [5]
For jewellers, traders and investors alike, this combination of record futures and spot prices confirms: the silver bull run is now front and centre in India’s commodity story.
Gold Also Shines as Fed Cuts Rates Again
Silver may have stolen the headlines, but gold is quietly rallying alongside:
- Around 9:45 am on 11 December, MCX Gold (February contract) was up about 0.60%, trading near ₹1,30,575 per 10 grams. [6]
In international markets:
- US gold futures (February) rose over 1% to around $4,271 per ounce,
- While silver marked another record high in the wake of the latest US Federal Reserve policy decision. [7]
The broader message from the market: both major precious metals are benefitting from a sharp shift in global interest-rate expectations and currency moves.
Why Are Silver and Gold Prices Surging Now?
1. US Federal Reserve Delivers Third Straight Rate Cut
The single biggest trigger came overnight from Washington:
- On 10 December 2025, the US Federal Reserve cut its benchmark interest rate by 25 basis points, bringing the federal funds target range down to 3.50%–3.75%, its lowest level in nearly three years. [8]
- This was the third consecutive rate cut in 2025, totalling 75 basis points of easing this year. [9]
- Crucially, the Fed’s internal “dot plot” now suggests only one more cut in 2026, signalling a cautious path ahead—but still a structurally lower-rate environment versus recent years. [10]
Lower interest rates generally reduce the opportunity cost of holding non-yielding assets like gold and silver, making them more attractive to global investors.
2. Weaker Dollar Supports Bullion
A softer US dollar has added fuel to the rally:
- After the Fed decision, the dollar index slipped about 0.25%, LiveHindustan noted, providing additional support to global gold prices. [11]
Because bullion is priced in dollars internationally, a weaker greenback makes gold and silver cheaper in other currencies, often triggering fresh buying from central banks, funds and retail investors.
3. Safe-Haven Demand and Policy Uncertainty
Market strategists cited by LiveHindustan highlight the rising policy uncertainty and the Fed’s delicate balancing act between growth, inflation and employment:
- Increased uncertainty around inflation trends, future rate cuts and global growth typically pushes investors toward safe-haven assets such as gold and silver. [12]
With the Fed divided on how quickly to ease policy further, and key US economic data still in flux, hedge funds and large investors appear to be building insurance via precious metals.
4. Structural Supply Deficit and Industrial Demand in Silver
Beyond the short-term reaction to the Fed, silver has a powerful fundamental story:
- Motilal Oswal Financial Services’ commodity research head, Naveen Damani, points to a widening global silver supply deficit as a key reason this rally may have legs. [13]
- Silver is not just a precious metal; it is a critical industrial input in solar panels, electronics, batteries and green-energy technologies, sectors still expanding aggressively worldwide.
As demand from both investors and industry climbs while supply struggles to keep pace, even modest macro triggers—like a US rate cut—can unleash outsized price moves, as seen this week.
What Experts Are Saying: Key Levels and Targets
Analysts across brokerages and research houses are now revising their targets for gold and silver:
- Motilal Oswal experts see silver’s uptrend as structural and long-lasting, projecting that:
- Silver could hit around ₹2,00,000 per kg in the first quarter of 2026, and
- ₹2,40,000 per kg by the end of 2026,
- With international prices potentially reaching $75 per ounce. [14]
Other analysts tracking global markets, quoted in LiveHindustan, highlight:
- Support and resistance zones in dollar terms for silver around $60–63.50 per ounce, and
- MCX silver support around ₹1,86,500–₹1,90,500 per kg, with resistance bands moving up toward ₹1,93,300–₹1,94,100 per kg following the latest breakout. [15]
Notably, many brokers maintain a bullish short-term view on both metals after the Fed decision, setting near-term upside targets of roughly ₹1,35,000 per 10 g for gold and ₹2,00,000 per kg for silver on MCX, if the momentum continues. [16]
Indian Bullion Markets: Silver Soars in Just Two Days
On the ground, Indian bullion traders are witnessing extraordinary moves in a very short span:
- Zee News Hindi’s coverage of Madhya Pradesh and Chhattisgarh bullion markets notes that silver has become about ₹10,000–₹11,000 more expensive in just two days, even as gold has seen comparatively smaller, more measured price changes over the same period. [17]
This rapid appreciation is reshaping:
- Jewellery demand – buyers may briefly defer large purchases of silver ornaments or coins, hoping for some cooling off.
- Investment decisions – traders and HNIs are locking in profits on earlier positions while momentum traders continue to ride the trend.
- Hedging strategies – businesses using silver as raw material could increase hedging on MCX to protect against further price shocks.
How the Fed’s Move Links Directly to Your Gold & Silver Prices
To connect the global story to your local price quote today:
- Fed cuts rates → US interest rates fall, and markets anticipate easier policy for longer. [18]
- Dollar weakens; bond yields ease → Non-yielding assets like gold and silver become more attractive, especially as hedges against inflation and uncertainty. [19]
- Global bullion prices jump → COMEX and global spot markets rally, with silver hitting new highs abroad as well. [20]
- Indian futures and spot track the move → MCX contracts and IBJA benchmarks adjust quickly, and local jewellers revise daily price sheets accordingly. [21]
That’s how a policy decision taken in Washington on 10 December translated into record silver prices on Indian screens and shopfronts on 11 December.
What This Means for Investors and Buyers
Short-Term: High Volatility, Fast Moves
- The combination of central-bank action, currency swings and technical breakouts usually leads to sharp intraday volatility in bullion.
- Traders should brace for wide intraday ranges in both MCX gold and silver contracts in the coming sessions.
Medium-Term: Bullish Bias with Event Risk
- As long as the Fed sticks to a lower-for-longer stance and global manufacturing demand for silver stays firm, the underlying bias for bullion remains positive, analysts suggest. [22]
- However, upcoming data on US jobs, CPI inflation and PCE price index—all watched closely by the Fed—could periodically jolt prices in either direction. [23]
For Retail Buyers
If you are:
- A long-term silver investor: The structural deficit and green-energy demand story supports a long-term positive view, but consider staggered buying instead of lump-sum purchases at all-time highs.
- Buying jewellery for weddings or festivals: Expect higher making-cost bills if you buy immediately; if your purchase is not urgent, watching prices for a few sessions could help you time dips better.
- Trading futures or options: Tight risk management is essential—stop losses, position sizing and awareness of global events can make the difference between riding the trend and getting caught in a sudden reversal.
Outlook: Can Silver Really Hit ₹2.4 Lakh/kg by 2026?
Expert projections from Motilal Oswal and other brokerages suggest that if:
- Global industrial demand for silver keeps rising,
- The supply deficit continues to widen, and
- Central banks around the world remain in a soft-to-neutral interest-rate mode,
then silver could plausibly climb toward ₹2,00,000 per kg in early 2026 and even approach ₹2,40,000 per kg by year-end, with international prices tracking towards the $75/oz region. [24]
References
1. www.jagran.com, 2. www.jagran.com, 3. www.livehindustan.com, 4. www.jagran.com, 5. zeenews.india.com, 6. www.livehindustan.com, 7. www.livehindustan.com, 8. www.livemint.com, 9. www.livehindustan.com, 10. www.businessinsider.com, 11. www.livehindustan.com, 12. www.livehindustan.com, 13. www.jagran.com, 14. www.jagran.com, 15. www.livehindustan.com, 16. www.livehindustan.com, 17. zeenews.india.com, 18. www.livemint.com, 19. www.livehindustan.com, 20. www.jagran.com, 21. www.jagran.com, 22. www.livehindustan.com, 23. www.livehindustan.com, 24. www.jagran.com
