Silver futures on the Multi Commodity Exchange (MCX) surged to a new all-time high of ₹1,09,250 per kilogram on Tuesday, as investors sought safety in precious metals amid escalating tensions between Israel and Iran.
The July 2025 silver contract rose sharply by 2.5%, gaining ₹2,686 from Monday’s close of ₹1,06,564. Evening trade data showed silver holding firm at ₹1,08,945 per kg, up 2.23%, according to official MCX figures.
The spike reflects mounting anxiety in global markets, with investors retreating from volatile assets like equities in favour of gold, silver, and sovereign bonds. Analysts point to growing geopolitical risk, currency fluctuations, and uncertainty around upcoming central bank policy decisions.
Gold Holds Near ₹99,200
Gold also saw modest movement. The August 5, 2025 gold futures edged up 0.02% to ₹99,202 per 10 grams, compared to Monday’s settlement at ₹99,178.
However, spot gold rates slipped slightly, as per the India Bullion and Jewellers Association (IBJA):
- 24-carat gold fell ₹226 to ₹99,147 per 10 grams
- 22-carat gold declined to ₹90,819 per 10 grams
- 18-carat gold eased to ₹74,360 per 10 grams
Analysts Flag Global Risk Sentiment
“With the current macro setup—geopolitical tensions, currency volatility, and speculation on rate cuts—silver’s appeal as a hedge is rising,” said Apurva Sheth, Head of Market Perspectives at SAMCO Securities.
“Retail and institutional participation is strengthening, and technically, silver is on a strong footing.”
International Market Snapshot
On the global front, prices diverged:
- Gold (COMEX) was down 0.40% at $3,404.67 per ounce
- Silver (COMEX) gained 1.65%, trading at $37.055 per ounce
YTD Returns
Since January 1:
- 24-carat gold has risen by ₹22,985 or 30.17%, from ₹76,162 to ₹99,147
- Silver has climbed by ₹19,543 or 26.83%, from ₹86,017 to ₹1,09,100
The sustained rally across precious metals signals persistent investor caution amid Middle East instability and speculation over the US Federal Reserve’s interest rate path.
Market watchers suggest that as long as geopolitical risk remains elevated, demand for silver and gold will continue to anchor market sentiment.
