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Informist, Thursday, Jun. 5, 2025

 

--MCX Jul silver contract hits record high of INR 104,947 per kg 

 

MUMBAI – Silver prices on the Mutli Commodity Exchange of India rose to an all-time high on Thursday due to short-covering, analysts said. Strength in gold prices caused by safe-haven demand amid ongoing geopolitical tensions also supported silver prices, they added. 

 

At 1613 IST, the most-active July silver contract of the MCX was over 3% higher from its previous close at INR 104,675 per kilogram. The contract rose 3% to a lifetime high of INR 104,947 per kg from its previous record high hit on Mar. 28. The September silver contract on the MCX also hit an all-time high of INR 105,857 per kg on Thursday.

 

According to Manav Modi, a research analyst at Motilal Oswal Financial Services Ltd., immediate resistance for the July silver contract is seen at INR 105,000 per kg and the key resistance is at INR 106,000 per kg. He sees immediate support at INR 102,000 per kg and key support at 100,900 per kg. 

 

Since the last record high of INR 102,000, July silver contracts did not see any rally as the commodity was at a "psychological level" and prices tend to reverse from this level, the analyst said. Currently there is a technical breakout in silver prices which was "coupled with long-due rally", Modi said. 

 

"This remarkable rally (in silver prices) is underpinned by a combination of weak US economic indicators, rising geopolitical tensions, a softening dollar, and robust industrial demand from sectors like electric vehicles and solar energy," Kedia Advisory said in a note. There is also a sharp decline in the gold-silver ratio from 107 to 95, suggesting silver is increasingly favoured over gold by investors seeking value and growth potential, the brokerage said.

 

Meanwhile, silver prices on the COMEX rose to a 13-year high of $36.01 per ounce, tracking gains in gold prices. Kedia Advisory said market volatility is expected to remain elevated due to ongoing uncertainties surrounding global monetary policy, US-China trade relations, and shifting inflation dynamics. "Overall, silver continues to reflect the dual narrative of a monetary hedge and an industrial growth story. As the global economic environment evolves, the metal's ability to balance both roles will determine its trajectory in the coming months," Kedia said.  End

 

US$1 = INR 85.79

 

Reported by J. Navya Sruthi

Edited by Tanima Banerjee

 

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