Silver hits all-time high in India: Spot price crosses Rs 1.11 lakh/kg; what’s driving the rally?

Silver prices in India surged to an all-time high on Friday, crossing Rs 1.11 lakh per kilogram in the spot market as investors turned to safe-haven assets amid deepening global trade frictions and expectations of a softer stance from the US Federal Reserve.On the Multi Commodity Exchange (MCX), silver futures moved past Rs 1.10 lakh/kg during early trading on Friday. In physical markets, silver changed hands at Rs 111 per gram — the highest domestic rate ever recorded, according to an ET report.This surge mirrored global trends, with international spot silver climbing 0.4% to $37.19 an ounce, according to Reuters. The spike marks the second consecutive session of gains for precious metals worldwide.“Investor appetite for silver picked up sharply as exchange-traded funds recorded strong inflows and safe-haven demand returned on the back of rising geopolitical and tariff-related risks,” said Kaynat Chainwala, AVP–Commodity Research at Kotak Securities, quoted ET.Market sentiment took a fresh hit after US President Donald Trump announced aggressive new tariffs — 35% on Canadian imports and a 50% levy on goods from Brazil — some of the steepest announced to date and due to take effect August 1.“Thursday’s gains in gold and silver were driven by a combination of trade anxiety and rising speculation around Fed policy easing,” said Rahul Kalantri, VP–Commodities at Mehta Equities. He noted that Trump’s push for a 300-basis-point rate cut had stoked fears of inflation, boosting demand for precious metals.Chainwala added that the resilience in the US economy has also supported silver, given its dual industrial and safe-haven characteristics. She expects prices on the MCX to test the Rs 1,14,000–1,15,000 range, while COMEX silver could approach $40 per ounce in the near term. Markets are also eyeing a potential new announcement from Trump on Russia, expected Monday, that could further elevate geopolitical risk.On Thursday, MCX September silver futures settled at Rs 1,09,123/kg, up 1.73%, while gold August futures edged up 0.24% to close at Rs 96,691 per 10 grams.According to Prithvifinmart Commodity Research, the President’s unpredictable trade policy has added to global financial uncertainty. Trump’s proposal of a 50% duty on copper imports from Brazil and an additional 10% tariff on BRICS countries has further dampened risk sentiment.In global markets, silver breached the key technical resistance of $37 per troy ounce. “The next resistance is between $37.40–37.55, with support at $36.60–36.85,” said Kalantri. Domestically, silver decisively broke through resistance levels of Rs 1,09,950–1,10,700.“With heightened volatility in the dollar index and ongoing trade policy risks, we expect precious metals to stay highly reactive,” said Manoj Kumar Jain of Prithvifinmart according to the report. He projected silver to maintain support near $36.40 and gold to hold firm above $3,280 on a weekly basis.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)