Silver Prices Surge 6% on MCX

Due to a global recession and domestic supply constraints, silver prices in India surged by about 6-7% on Monday, with MCX futures rising to ₹2,40,328 per kilogram, up ₹16,538 from recent levels. Major cities like Delhi and Mumbai saw spot silver prices surpass ₹2.5 lakh/kg last week, a weekly increase of more than ₹37,000 per kg from ₹2.19 lakh on 22 December. Before some profit booking, traders on the Multi-Commodity Exchange (MCX) witnessed heavy volumes as the white metal reached intraday highs close to ₹2.41 lakh/kg.

Key Drivers Behind the Rally

There is a shortage of silver due to strong industrial demand from solar panels, electric vehicles, and electronics as well as China's proposed export restrictions beginning in January 2026. Global spot silver surpassed $80/oz due to safe-haven purchasing spurred by a sinking US currency, anticipation of a Fed rate decrease, and geopolitical tensions. However, a CME margin hike caused pullbacks. Leftovers from the holiday season and the rupee's decline to about ₹91/USD in India contributed to the spike, with year-to-date gains surpassing 150%.

Market Impact and Outlook

Retail silver prices are currently ₹2,230–2,510 per 10g in all cities, up ₹40–60 every day, surpassing the increase in gold. Experts saw increased activity in MCX Silver Micro futures (1 kilogram lot) and Silver Mini futures (5 kg), with ₹2.5 lakh/kg support and the possibility of ₹3 lakh by mid-2026 if deficits continue. Despite the volatility caused by margin increases and worldwide corrections, investors are recommended to exercise cautious, but the bull run on fundamentals is still ongoing.