Silver soars to record Rs 1,78,649. What powered the rally and how close is Rs 2 lakh target?
Silver prices touched a fresh all-time high on the Multi Commodity Exchange (MCX) on Monday, with the March 2026 futures contract surging to Rs 1,78,649 per kg intraday, after displaying strong momentum in the previous trading session.
The rally builds on strong momentum seen over recent sessions and comes amid a global surge in silver prices, supported by expectations of a U.S. Federal Reserve interest rate cut, weakness in the U.S. dollar index, and safe-haven demand.
Manoj Kumar Jain of Prithvifinmart Commodity Research attributed the rally to a historical technical breakout. “Silver gives a strong price breakout after 45 years of consolidation and prices first crossed $55 per troy ounce levels in the international markets,” he said, adding that silver is currently “in the limelight after strong industrial demand and continuous deficit of physical material for the last 4 years.”
Jain also pointed out a key macro trigger, saying, “Recently US included Silver in its critical mineral list and after this, it caught the eyes of other countries to create reserves.”
Domestic momentum has further accelerated due to currency weakness. Rahul Kalantri, Vice President Commodities at Mehta Equities, noted that the rupee slipping to a record low against the U.S. dollar has added support to gold and silver prices.
He added, “Silver hits fresh record high amid Fed rate cut expectations and profit taking in the dollar index.” On the technical side, Kalantri observed, “The technical charts for silver have turned more bullish in the past week or so, and that’s inviting the chart-based speculators to the long side of the silver market.”Further, Ponmudi R, CEO of Enrich Money, highlighted, “Immediate resistance is seen at Rs 1,79,000–Rs 1,80,000, and a breakout above this zone can push silver toward Rs 1,81,000–Rs 1,85,000,” he noted. He further said that strong support for the metal remains at Rs 1,72,000–Rs 1,68,300, and that “as long as silver holds above this band, the bullish trend stays firmly in place.”
Is Rs 2 lakh target closer than one may think?
Jain provided an outlook for the near term, stating that “current trend remains continuous in the short term and prices likely to test $62–65 per troy ounce range in this month.” On the MCX, he said, “March contract of silver likely to test Rs 1,85,000–Rs 1,90,000 in this month. And silver is expected to hit a psychological level of Rs 2,00,000 in the first quarter of 2026 in the domestic markets.”
He termed the overall trend as “super bullish for silver.”
International prices support domestic outlook
From an international perspective, Apurva Sheth, Head of Market Perspectives and Research at SAMCO Securities, commented that silver has formed a “classic cup and handle structure” after weeks of consolidation between $46 and $54 per ounce.
“A sustained close above the USD 54 mark will confirm a fresh breakout. The height of the pattern suggests that silver has room to add roughly eight to nine dollars from the breakout point, which opens the path towards levels of $63–64/ounce,” Sheth said in his note.
The outlook for silver remains closely tied to global macroeconomic cues, the upcoming U.S. Fed policy decision, currency movements, and continued technical strength. With prices already breaching historic levels, market participants are now watching whether silver can scale towards the Rs 2 lakh mark in the coming weeks and months, as projected by analysts.
Also read: Silver ready for next leg of rally? This technical pattern indicates upside potential of up to $9
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)