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Informist, Monday, Jul. 14, 2025

 

--MCX Sept silver contract hits fresh record high of INR 114,875 per kg

--MCX Dec silver contract hits fresh record high of INR 116,522 per kg

 

MUMBAI – Futures contracts of silver rose to a new record high Monday on the Multi Commodity Exchange of India as the rupee depreciated against dollar. Domestic prices also rose, taking cues from those on COMEX due to increased safe-haven demand amid ongoing tensions about US' trade policies, analysts said. 

 

The most active September silver contract on the MCX rose 1.7% from its previous close to INR 114,763 per kg. Similarly, the December Silver contract also rose 1.6% from the previous close to INR 116,522 a kg. At 1015 IST, the most active September silver contract on the MCX was up over 1.5% at INR 114,707 per kg. On the COMEX, the most active September silver contract was up over 1% at $39.43 per ounce after hitting a near-14-year high of $39.91 per ounce. 

 

On the MCX, prices rose as the Indian rupee depreciated against the dollar, Ajay Kedia, director, Kedia Advisory said. Silver is imported largely and if the value of rupee falls against the dollar, the price of the metal is likely to rise in rupee terms, weighing on the demand for the metal in the country. The rupee slumped and breached the psychologically crucial 86-per-dollar mark against the greenback Monday as banks purchased the dollar on behalf of foreign portfolio investors amid rising uncertainty around US tariff policies, dealers said.  

 

Further, the ongoing uncertainties about the US' trade policies are also supporting silver prices amid rising safe-haven demand, Kedia said. The gold-silver ratio also fell to 86 Monday from 90 last week, he added. This indicates relative strength in silver compared to gold. 

 

On Saturday, US President Donald Trump posted on Truth Social that the US will impose a 30% tariff on goods from the European Union and Mexico effective Aug. 1. Speaking to reporters on Sunday, US President Donald Trump said he will send Patriot air defence missiles to Ukraine. Trump has expressed frustration with Russian President Vladimir Putin due to the lack of progress on peace with Ukraine. Last week, Trump said he plans to make a "major statement" on Russia on Monday.

 

A bipartisan US bill imposing sanctions on Russia to spur Ukraine peace talks is gaining traction in the Congress, but still awaits key support from the White House, Investing.com reported. "This bill would slap US trading partners, including China and India, with 500% tariffs on their products if they make any purchases of Russian oil and gas."

 

Analysts also see tightness in silver supply. US premiums rise and the spot London market shows signs of tightness, Nirmal Bang brokerage firm said in its Monday's commodity outlook. "The implied annualised one-month borrowing costs for silver in London jumped to approximately 4.5% on Friday, well above the typical near-zero rate. Higher lease rates indicate a tightening market." 

 

According to Kedia, outlook for the rest of the session:

--MCX silver seen at INR 110,600-INR 116,400 per kg

--COMEX silver seen at $36.40-$40.0 an ounce

 

End

 

US$1 = INR 85.94

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

 

Reported by J. Navya Sruthi

Edited by Deepshikha Bhardwaj

 

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