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Informist, Wednesday, Dec. 10, 2025

--MCX March silver contract hits new record high of INR 190,798 per kg 

--COMEX March silver contract hits new record high of $62.02 per ounce 

MUMBAI – Futures contracts of silver hit a fresh all-time high on the Multi Commodity Exchange on Wednesday, tracking a new high on the COMEX due to rising expectations of a rate cut by the US Federal Reserve on Thursday. Prices also surged due to rising demand, dwindling visible inventories, renewed inflows into exchange-traded funds, and expectations of another supply deficit this year.

The US Federal Reserve is widely expected to cut rates by 25 basis points at the outcome of its meeting at 0030 IST Thursday. According to the CME's FedWatch tool, 88.6% of Fed fund futures traders are now pricing in a 25-basis-point rate cut, while nearly 11.4% of traders anticipate no change in interest rates. Typically, lower interest rates boost the appeal of non-interest-yielding precious metals such as silver.

Industrial demand, especially from solar and green technologies, continues to strengthen the medium-term outlook, Kedia Advisory said in a note. "People are anticipating that there's going to be strong industrial demand for silver for years to come, which is why it's been bid up, the silver price," Reuters quoted Fawad Razaqzada, market analyst at City Index and FOREX.com, as saying. Sectors including solar energy, electric vehicles and their infrastructure, and data centres and artificial intelligence will drive industrial demand higher through 2030, the Silver Institute industry association said in a research report.

Silver-backed exchange traded funds added nearly 200 tonnes, pushing total holdings to their highest levels since 2022, Kedia Advisory said. A significant volume of silver moved into London last month, tightening availability in other markets, while Shanghai Futures Exchange inventories fell to their lowest in a decade, it said. Chinese exports spiked to a record 660 tonnes in October, further reshuffling global supply flows, it said.

Silver is also getting a boost from worries that the US could target the metal in future tariffs after adding it to the Geological Survey's list of critical minerals last month, driving heavy inflows into the US and tightening supply elsewhere, The Wall Street Journal reported.

At 0922 IST, the most-active March silver contract on the COMEX was up 1% at $61.47 per ounce, after touching a record high of $62.02 per ounce. On the MCX, the same-month contract hit another high of INR 190,799 per kg, up 1.1%.  End

US$1 = INR 89.96

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

Reported by Shreya Shetty

Edited by Avishek Dutta

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