Key Points:
- Silver futures on MCX crossed ₹3 lakh per kg for first time, jumping ₹13,553 (4.7%) to ₹3,01,315
- International silver futures surged 6.56% to $94.35 per ounce on industrial demand and weaker dollar
- Gold futures rose ₹2,443 (1.7%) to ₹1,44,941 per 10 grams, touching ₹1,45,500 during trading
- Strong domestic demand and positive global cues drove the rally ahead of wedding season
- Experts predict gold may continue rising while silver could stabilize after record-breaking surge
Silver futures on the Multi-Commodity Exchange (MCX) achieved an unprecedented milestone on Monday, January 19, 2026, crossing the ₹3 lakh per kilogram mark for the first time in history. The March delivery silver futures contract recorded a massive single-session gain of ₹13,553, equivalent to approximately 4.7 percent, to close at a record high of ₹3,01,315 per kilogram. This historic surge has sparked intense discussions among market participants and investors, marking a new era for precious metals trading in India.
The rally was driven by a combination of robust domestic demand and favorable global cues, with silver outperforming gold in recent trading sessions. Market analysts noted that the surge came ahead of the peak wedding season, typically a period of heightened gold and silver jewelry demand across India.
International Markets Drive Momentum
Silver prices also set new records in international markets, reinforcing the global bullish trend. The March delivery silver futures contract on international exchanges rose by $5.81, or 6.56 percent, to reach $94.35 per ounce. This strong performance was attributed to several key factors, including robust industrial demand from the manufacturing and technology sectors, where silver is essential for electronics, solar panels, and various industrial applications.
Additionally, a weaker US dollar provided strong support to precious metals, making them more attractive to investors holding other currencies. The dollar weakness stemmed from growing expectations that the US Federal Reserve may cut interest rates in the coming months, reducing the opportunity cost of holding non-yielding assets like gold and silver.
Gold Prices Continue Upward Trajectory
Gold futures on the MCX also continued their upward trend, rising by ₹2,443 to ₹1,44,941 per 10 grams, representing an increase of approximately 1.7 percent. During intraday trading, gold prices touched the ₹1,45,500 per 10-gram level, demonstrating strong bullish momentum. Market experts believe that domestic demand will intensify further with the official start of the wedding season, which typically runs from late January through June.
The precious metal has benefited from multiple supportive factors, including safe-haven demand amid global economic uncertainties, central bank purchases, and the same Federal Reserve rate cut expectations that are boosting silver. The combination of strong physical demand and investment inflows has created a powerful upward price pressure.
Factors Behind the Precious Metals Rally
Several fundamental drivers have contributed to the remarkable price surge in both gold and silver:
Industrial Demand: Silver’s extensive industrial applications, particularly in renewable energy technologies like solar panels and electric vehicles, have created structural demand growth. As global economies push for green energy transitions, silver consumption in industrial sectors continues to expand.
Investment Demand: Both metals are seeing increased investment interest as safe-haven assets, particularly amid geopolitical tensions and economic uncertainties. Investors are allocating more capital to precious metals as portfolio diversifiers and inflation hedges.
Currency Movements: The weaker US dollar has made dollar-denominated precious metals cheaper for buyers using other currencies, boosting international demand. This currency effect has been particularly pronounced in emerging markets like India.
Federal Reserve Policy Expectations: Market participants are pricing in potential interest rate cuts by the US Federal Reserve, which typically benefits non-yielding assets like gold and silver. Lower interest rates reduce the opportunity cost of holding precious metals versus interest-bearing assets.
Expert Outlook and Price Predictions
According to market experts, the outlook for gold remains constructive, with expectations of interest rate cuts by the US Federal Reserve likely to continue supporting prices in the near term. The wedding season in India, which drives significant physical gold and silver jewelry demand, is expected to provide additional price support.
However, after silver’s sharp surge to record levels, some analysts caution that the metal may experience a period of stability or trade within a limited range as markets digest the rapid gains. The extreme volatility and quick price appreciation could trigger profit-taking from speculative positions, potentially leading to short-term corrections.
Investors will be closely monitoring upcoming global economic data releases, particularly reports from China, which could play a crucial role in determining future price movements. Chinese economic indicators are especially important for precious metals, as China is both a major consumer and a key driver of global industrial demand.
Market Implications for Investors
The record-breaking performance of silver, crossing the psychological ₹3 lakh per kg barrier, represents a significant milestone for Indian commodity markets. This level could act as a new support base if prices stabilize, or potentially become a resistance level if profit-taking emerges.
For gold, the approach toward ₹1.45 lakh per 10 grams signals strong bullish momentum, with many traders eyeing the ₹1.5 lakh level as the next major psychological barrier. The relative outperformance of silver versus gold in recent sessions suggests that industrial metals may be gaining favor among investors seeking both precious metal safety and industrial growth exposure.
The wedding season factor adds a seasonal element to price dynamics, as Indian jewelry demand typically peaks during this period. This cultural demand driver, combined with global investment flows, creates a powerful catalyst for continued price appreciation in the coming months.
