Silver prices surged to a fresh record high on Wednesday, stealing the spotlight in the bullion market as precious metals continued their strong rally. On MCX, silver March futures opened higher by over 2%, rising ₹6,462 to trade at ₹2,81,649 per kilogram before touching a new lifetime peak at ₹2,81,802 per kilogram.

Gold and Silver Performance on MCX

Gold also participated in the rally, though with more modest gains compared to silver's spectacular performance. The precious metals showed strong momentum across both domestic and international markets.

In the previous session, both metals ended on a positive note. Gold February futures settled at ₹1,42,241 per 10 grams with a gain of 0.15%, while silver March futures jumped 2.31% to close at ₹2,75,187 per kilogram.

International Market Developments

The rally in precious metals was primarily driven by softer-than-expected US inflation data that reinforced expectations of Federal Reserve interest rate cuts. Silver nearly touched the $32 mark internationally, while gold hovered close to its record highs.

The sharp movement followed the release of US core CPI data, which rose 0.2%, slightly below the expected 0.3%, while holding steady at 2.6% annually. This reading boosted the case for easing monetary policy, offering support to both gold and silver.

Market Outlook and Trading Recommendations

According to Manoj Kumar Jain of Prithvifinmart Commodity Research, geopolitical tensions and civil unrest in Iran have further underpinned the safe-haven appeal of precious metals. The US Supreme Court's upcoming decision on Trump-era tariffs could also influence market direction.

Gold Trading Ranges:

• Support: ₹1,41,400 to ₹1,40,700
• Resistance: ₹1,43,000 to ₹1,44,200
• Buy recommendation: ₹1,41,700 to ₹1,41,100 with stop loss below ₹1,40,000
• Targets: ₹1,43,000 to ₹1,44,200

Silver Trading Ranges:

• Support: ₹2,72,000 to ₹2,68,000
• Resistance: ₹2,80,000 to ₹2,85,500
• Buy recommendation: ₹2,72,000 to ₹2,66,000 with stop loss below ₹2,61,000
• Targets: ₹2,80,000 to ₹2,85,000

Physical Gold Prices Across Major Cities

Physical gold prices remained elevated across major Indian cities, reflecting the strong momentum in futures markets.

The US Dollar Index was last seen hovering around the 99.16 mark, up 0.02%. Market experts expect gold and silver prices to remain volatile through the session amid fluctuations in the dollar index and the rupee, as well as updates on geopolitical developments.

Silver prices have achieved a historic milestone by surging above $90 per ounce for the first time ever, marking a significant breakthrough for the precious metal. The rally comes amid favorable market conditions driven by weaker-than-expected US inflation data that strengthens the case for additional Federal Reserve interest rate cuts.

Market Drivers Behind Silver's Historic Rise

The precious metals market is experiencing strong momentum as multiple factors align to support higher prices. Weaker US inflation data has reinforced expectations that the Federal Reserve may implement further interest rate cuts, creating a more favorable environment for precious metals investments. Lower interest rates typically reduce the opportunity cost of holding non-yielding assets like silver and gold.

Geopolitical tensions continue to contribute to the precious metals rally, as investors seek safe-haven assets amid global uncertainties. This combination of monetary policy expectations and geopolitical factors has created a supportive backdrop for silver's historic price breakthrough.

Precious Metals Performance in 2026

Precious metals have made a strong start to 2026, continuing the momentum from significant rallies experienced in the previous year. The sector's performance reflects broader market dynamics and investor sentiment toward alternative assets during periods of economic and political uncertainty.

Federal Reserve Independence Concerns

The precious metals rally has gained additional support from concerns about Federal Reserve independence following prospects of a criminal indictment against Chair Jerome Powell. This development has revived worries about potential political interference with the monetary authority's decision-making processes.

Central bankers worldwide have rallied behind Powell, demonstrating international support for Federal Reserve independence. JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon has warned that political intervention could backfire, highlighting the importance of maintaining the central bank's autonomy in monetary policy decisions.

Market Outlook and Implications

Silver's breakthrough above $90 per ounce represents a significant psychological and technical milestone for the precious metals market. The achievement reflects the convergence of multiple supportive factors, including monetary policy expectations, geopolitical tensions, and concerns about central bank independence.

The precious metals sector's strong performance into 2026 suggests continued investor interest in alternative assets amid ongoing economic and political uncertainties. Market participants are closely monitoring developments in US monetary policy and geopolitical situations that could further influence precious metals pricing.