Silver Prices Hit Lifetime High in India (Representative image)

Photo : PTI

Silver prices hit an all-time high in India on July 11, surpassing Rs 1.10 lakh per kilogram on the Multi Commodity Exchange (MCX). In the spot market, silver traded at Rs 109.90 per gram, equivalent to Rs 1,09,900 per kilogram, according to data from Goodreturns.

What’s Behind This Surge?

The surge in silver prices has been attributed to increased buying activity from traders, driven by rising concerns over tariff threats and inflation risks stemming from recent US economic policies. The global spot price of silver also experienced a 0.4% increase, reaching $37.17 per ounce, as reported by Reuters. Rahul Kalantri, Vice President of Commodities at Mehta Equities, commented, “Investors are seeking safety amid fresh tariff threats and policy risks, which are stoking inflation fears.”

Influence of International Trends

Silver prices in India closely track international rates and are significantly influenced by the rupee-dollar exchange rate. A weaker rupee against the dollar can lead to higher costs for Indian buyers, especially if global prices remain stable. Additionally, trends in interest rates and inflation play a crucial role in shaping the silver market. Typically, silver and gold prices move in tandem; thus, higher inflation and lower interest rates tend to support precious metal prices.

Current Market Levels

On the MCX, silver currently has support at Rs 1,08,480 per kilogram and resistance at Rs 1,10,700 per kilogram. Spot traders anticipate further upside if global prices remain firm and the rupee weakens further.

As investors navigate through economic uncertainties, the focus on safe-haven assets like silver is likely to continue, reflecting broader market trends and investor sentiment.