Silver hits fresh all-time high on MCX amid geopolitical tensions

IANS June 17, 2025 373 views

Silver futures on MCX soared to a historic high of Rs 1.09 lakh per kg as Middle East tensions drove investors toward safe-haven assets. Gold prices showed mixed trends domestically while gaining globally, reflecting market uncertainty. Analysts link the rally to geopolitical risks and anticipation around the US Fed's rate decision. Both metals have surged over 25% this year, signaling strong investor caution.

"With geopolitical tensions and currency volatility, silver’s appeal as a hedge is rising" - Apurva Sheth, SAMCO Securities
Silver hits fresh all-time high on MCX amid geopolitical tensions
Mumbai, June 17: Silver futures on the Multi Commodity Exchange (MCX) touched a new all-time high of Rs 1,09,250 per kilogram on Tuesday, as investors rushed to safe-haven assets amid rising tensions between Israel and Iran.

Key Points

1

Silver futures jump 2.5% to Rs 1,09,250/kg

2

Gold prices show mixed trends amid Fed watch

3

Safe-haven demand rises with Iran-Israel conflict

4

Retail and institutional interest fuels bullish momentum

The July 2025 silver contract jumped 2.5 per cent, gaining Rs 2,686 compared to the previous close of Rs 1,06,564 per kilogram.

In the evening trade, silver futures were trading 2.23 per cent higher at Rs 1,08,945 per kilogram, according to official MCX data.

The sharp rise in silver prices reflects growing uncertainty in the global financial markets, where investors tend to move away from high-risk assets like equities and instead put their money into relatively safer options such as gold, silver, and government bonds.

Gold futures also witnessed an uptick during Tuesday’s trading session. The gold contract for August 5, 2025, edged up by 0.02 per cent to Rs 99,202. On Monday, gold had settled at Rs 99,178 per 10 grams.

According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold fell by Rs 226 to Rs 99,147 per 10 grams, down from Rs 99,373.

Similarly, 22-carat gold declined to Rs 90,819 per 10 grams from Rs 91,026. The price of 18-carat gold also slipped, from Rs 74,530 to Rs 74,360 per 10 grams.

Experts attribute the upward movement in precious metals to global uncertainty and investor focus on the US Federal Reserve’s upcoming decision on interest rates.

"With the current macro setup, geopolitical tensions, currency volatility, and potential central bank pivoting, silver’s appeal as a hedge is rising," Apurva Sheth of SAMCO Securities said.

"Retail and institutional interest is building, and technically, the setup is textbook bullish," Sheth added.

On the international front, gold and silver prices were moving in opposite directions. At the time of reporting, gold on COMEX was down 0.40 per cent at $3,404.67 per ounce, while silver was up 1.65 per cent at $37.055 per ounce.

Since January 1, the price of 24-carat gold has surged by Rs 22,985 or 30.17 per cent, rising from Rs 76,162 to Rs 99,147 per 10 grams.

Similarly, silver has gained Rs 19,543 or 26.83 per cent, climbing from Rs 86,017 to Rs 1,09,100 per kilogram.

The surge in prices of both gold and silver indicates heightened investor concern over global instability and the ongoing conflict in the Middle East.

Market experts believe that as long as geopolitical risks remain elevated, demand for precious metals is likely to stay strong.

Reader Comments

R
Rahul K.
Silver crossing ₹1 lakh per kg is insane! 😱 This shows how nervous investors are about global stability. I remember buying silver jewelry for my sister's wedding at ₹45k/kg just 5 years back. Middle East tensions are really shaking markets worldwide.
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Priya M.
As someone who invests in commodities, I've noticed silver often outperforms gold during crises. But at these prices, middle-class families will struggle with wedding purchases. Government should consider reducing import duties temporarily to ease the burden.
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Arjun S.
Interesting how COMEX gold is down while MCX is up. Shows our markets react differently to global tensions. Maybe because we're net importers? Experts should explain this divergence better.
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Sunita R.
My mother's traditional silver utensils collection is now worth more than my mutual funds! 😂 On serious note, this volatility makes me worried - common people suffer most when essentials become investment assets.
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Vikram J.
While precious metals are good hedges, we shouldn't ignore that 30%+ returns in 6 months indicate deep economic anxieties. RBI should watch inflation closely - rising gold/silver prices often precede broader price rises in our economy.
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Neha P.
The article misses one key point - how this affects small jewelers. My family runs a silverware shop in Jaipur, and we're struggling with inventory decisions. Buy at these prices and risk losses if tensions ease, or wait and lose customers?

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Tags:
Silver price MCX Gold rate Safe-haven assets Geopolitical tensions Precious metals Iran-Israel conflict