Whalesbook
Silver Futures Breach Historic Milestone
Silver futures on Monday soared past the landmark Rs 3 lakh per kilogram level for the first time, marking a significant milestone for the precious metal. The March delivery contract on the Multi Commodity Exchange (MCX) skyrocketed by 4.71 percent, settling at a record Rs 3,01,315 per kilogram. This domestic surge mirrored international trends, where March silver futures climbed 6.56 percent to a record USD 94.35 per ounce.
Drivers of the Surge
The ascent of the white metal has been underpinned by a confluence of factors. Analysts point to robust investor demand, which has seen silver outperforming gold in recent sessions, alongside sustained industrial consumption. A weakening U.S. dollar further lent support, making dollar-denominated commodities more attractive to holders of other currencies.
Constructive Outlook with Caution
Christopher Wong, a strategist at OCBC, noted that the medium-term narrative for silver remains constructive. He cited persistent physical deficits, resilient industrial demand, and its role as a safe-haven asset. However, Wong cautioned that the rapid pace of the recent price extension might warrant near-term tactical vigilance. The gold-silver ratio has notably declined sharply from highs near 105 in late 2025 to the low-50s, signaling silver's outsized performance relative to gold.