Silver Prices
MCX silver prices hit record high amid geopolitical worries, short covering
This story was originally published at 11:14 IST on 18 June 2025
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--MCX Jul silver contract hits new all-time high of INR 109,635 per kg
--MCX Sept silver contract hits new all-time high of INR 110,922 per kg
MUMBAI – The price of silver hit a fresh all-time high on the Multi-Commodity Exchange of India in early trade Wednesday. Silver prices surged amid the ongoing geopolitical uncertainty in West Asia, and due to short covering, said analysts.
The silver contract on the MCX rose to a lifetime high of INR 109,635 per kg on Wednesday. The September silver contract also hit an all-time high of INR 110,922 per kg. At 1045 IST, the most-active July silver contract on the MCX was 0.5% higher at INR 109,553 per kg.
The Israel-Iran conflict escalated as the two countries continued their strikes on each other for the sixth consecutive day, which added to the safe-haven appeal of precious metals, as both countries targeted critical energy infrastructure, fuelling market volatility, Ajay Kedia, director at Kedia Advisory, said.
Prices also rose as the rupee fell against the dollar, and also because of sustained demand for the metal. The metal's critical role in the green economy, particularly in solar power, electronics, and electrification, now represents over half of global demand, underscoring silver's long-term structural importance, Kedia Advisory said in a note.
Industrial fabrication, silver's primary demand driver, is expected to rise 3% in 2025, exceeding 700 million ounces for the first time, according to analysts. Total global demand is seen holding steady at 1.2 billion ounces, with gains in industrial applications and physical investment offset by weaker jewellery and silverware demand, they said.
Meanwhile, the Silver Institute forecast a fifth consecutive annual supply deficit for the white metal in 2025, projected at 117.6 million troy ounces. Though the deficit is expected to narrow by 21% this year, ongoing supply constraints may continue to support elevated price levels, according to Kedia Advisory. In addition, physical investment demand for coins and bars is projected to rebound by 7?ter a sharp 22% drop in 2024. Improving sentiment in Europe and North America is driving fresh investment, with western investors adjusting to higher price levels.
Investors are now waiting for the US Federal Reserve's policy decision later in the day, Ajay Kedia said. The Fed is widely expected to hold rates steady.
Meanwhile, the rupee fell to a 10-week low of 86.3700 on Wednesday, shortly after the market opened. When the rupee depreciates against the dollar, silver prices adjust in the domestic market as it is priced in rupee terms. End
US$1 = INR 86.34
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Taniva Singha Roy
Edited by Tanima Banerjee
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