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Informist, Monday, Jun. 9, 2025

 

--MCX Jul silver contract hits record high of INR 106,436 per kg 

--MCX Sept silver contract hits record high of INR 107,495 per kg 

 

MUMBAI – Silver contracts on the Multi Commodity Exchange of India extended the rally and hit another record high on Monday. The contracts rose, taking cues from the COMEX, where prices are trading at multi-year highs, driven by strong technical momentum, robust industrial demand, and deepening supply deficits, according to analysts.

 

At 1535 IST, the most-active July silver contract of the MCX was 0.6% higher at INR 106,085 per kilogram. The contract rose to a lifetime high of INR 106,436 per kg earlier in the day. The September silver contract on the MCX also hit an all-time high of INR 107,495 per kg on Monday.

 

"The precious metal's critical role in clean energy and electronics underpins over half of global demand, while the Silver Institute projects a narrower—yet persistent—deficit in 2025," Kedia Advisory said in a note. "Investors are also drawn to silver as a safe haven amid economic uncertainty. Growing bets on a Fed rate cut in September, spurred by soft US data despite solid non-farm payrolls, have further fueled the rally," the brokerage said.

 

The global silver market is expected to be in a deficit for the fifth straight year in 2025 at 117.6 million ounces, according to the Silver Institute. Total demand is projected to fall slightly to 1.15 billion ounces and total supply of the metal is estimated to rise by 1.5%, led by higher mine production.

 

A weaker dollar also supported silver prices. At 1546 IST, the dollar index, which measures the greenback's strength against a basket of six major currencies, was down 0.2% at 98.89. A weaker dollar makes dollar-denominated commodities such as silver cheaper for holders of other currencies, aiding demand.

 

"This rally (in silver) is further supported by a narrowing gold-silver ratio, which now stands around 94, down sharply from April's peak of 105—its highest since May 2020," Kedia Advisory said.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Ashutosh Pati

Edited by Saji George Titus

 

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