Silver Rebounds to ₹2.50 Lakh/Kg on MCX as Spot Prices Gain 6% Weekly
Silver prices rebounded strongly, with MCX futures hitting ₹2.50 lakh per kg and spot silver gaining 1.40% to $77.96/oz, tracking for over 7% weekly gains. The recovery was driven by geopolitical risk premium, commodity index rebalancing, Fed rate cut expectations, and trade negotiations, despite headwinds from a stronger US dollar reaching one-month highs.
*this image is generated using AI for illustrative purposes only.
Silver prices staged a dramatic recovery in both domestic and international markets, snapping a two-day losing streak with sharp gains that defied market expectations of continued weakness. The white metal's rebound came as investors weighed geopolitical risks and trade developments against technical factors including commodity index rebalancing and US dollar strength.
MCX Silver Hits ₹2.50 Lakh Mark
Domestic silver futures demonstrated strong momentum on the Multi Commodity Exchange (MCX), with March 5 expiry contracts reaching significant milestones during the trading session.
| Parameter: | Details |
|---|---|
| Opening Price: | ₹2,44,455 per kg |
| Previous Close: | ₹2,43,324 per kg |
| Intraday High: | ₹2,50,250 per kg |
| Intraday Low: | ₹2,43,670 per kg |
| Session Gain: | 3.00% |
The contracts successfully breached the psychologically important ₹2.50 lakh per kilogram level, marking a significant technical achievement for the precious metal on domestic exchanges.
International Markets Show Strong Performance
Spot silver prices mirrored the domestic strength, with international markets posting solid gains despite currency headwinds. The metal gained 1.40% to reach $77.96 per ounce, positioning itself for substantial weekly gains.
| Metric: | Performance |
|---|---|
| Spot Price: | $77.96 per ounce |
| Daily Gain: | 1.40% |
| Weekly Performance: | Over 7.00% gain |
| Trend: | Strong upward momentum |
The weekly performance of over 7% represents a significant turnaround from the previous two-day decline, highlighting the metal's resilience and investor appetite for safe-haven assets.
Key Market Drivers
Five primary factors contributed to silver's strong rebound, creating a confluence of supportive conditions for the precious metal:
- Commodity Index Rebalancing: Institutional rebalancing activities provided technical support
- US Fed Rate Cut Expectations: Monetary policy outlook favored precious metals
- Geopolitical Risk Premium: Safe-haven demand increased amid global uncertainties
- Stronger US Dollar Impact: Dollar strength to one-month highs created mixed pressures
- US-India Trade Deal Negotiations: Ongoing trade discussions influenced market sentiment
Market Outlook Considerations
The silver market's attention has shifted toward upcoming US economic data, particularly the non-farm payrolls report. Market participants are closely monitoring how employment data might influence Federal Reserve policy expectations and subsequent precious metals demand. The stronger US dollar, which reached one-month highs amid anticipation of Supreme Court decisions on emergency tariff powers, continues to create headwinds for dollar-denominated commodities while geopolitical factors provide offsetting support.
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