MCX silver at record high on fall in rupee, geopolitical tensions
This story was originally published at 18:00 IST on 17 June 2025
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--MCX Jul silver contract hits new all-time high of INR 109,250 per kg
--MCX Sept silver contract hits new all-time high of INR 110,480 per kg
NEW DELHI – The price of silver rose to a fresh all-time high on the Multi Commodity Exchange of India Tuesday. The rise in silver price came on a fall in the rupee against the dollar, growing geopolitical uncertainty due to the Israel-Iran conflict, and sustained industrial demand, analysts said.
"The metal has seen robust support from a combination of strong industrial demand, persistent supply constraints, and heightened geopolitical uncertainty," Kedia Advisory said in a note. The Israel-Iran conflict continues to add safe-haven appeal, as both countries target critical energy infrastructure, fuelling market volatility.
Adding further tailwinds to the price of silver is the sustained supply deficit in the global market. The global silver market is expected to be in a deficit for the fifth consecutive 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 1.5% to 1.05 billion ounces, led by higher mine production. The global silver market was in a deficit of 148.9 million ounces in 2024 and 184.3 million ounces in 2023.
Meanwhile, the rupee settled near a 10-week low of 86.2400 a dollar. When the rupee depreciates against the dollar, silver prices adjust in the domestic market as it is priced in rupee terms.
At 1648 IST, the most-active July silver contract on the MCX was 2.4% higher at INR 109,149 per kg. The contract rose to a lifetime high of INR 109,250 per kg earlier in the day. The September silver contract on the MCX also hit an all-time high of INR 110,480 per kg Tuesday. End
US$1 = INR 86.24
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Pallavi Singhal
Edited by Rajeev Pai
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