MCX September silver contract hit a fresh record high of Rs 1,11,000 per kg on Wednesday. The July futures have also hit a fresh record high of Rs 1,09,748 per kg. The demand for the white metal has seen a steady rise, even though it was not at pace with gold.
The commodity's future prices crossed the Rs 1 lakh mark earlier this month driven by the industrial demand for Silver. Over 50% of the demand now is driven by solar, electronics, and electrification.
Trump's threats against Iran have further boosted the safe-haven demand of precious metals. Fed is expected to hold rates and investors are eyeing policy guidance.
"Silver hits 109500 on MCX, supported by resilient industrial demand, tight supply, and geopolitical tensions. The metal's growing importance in green technologies—like solar energy and electronics—now makes up over half of total global demand," said Amit Gupta, senior research analyst at Kedia Advisory. The outlook stands at Rs 1,30,000, according to Gupta.
Supply remains under pressure, with 2025 marking the fifth straight year of deficit despite a projected 21% narrowing.
Investors are also awaiting the U.S. Federal Reserve's rate decision, expected to leave rates unchanged but offer key policy insights, he added.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
