Silver prices sparkled in the domestic market on Monday, rising sharply by more than Rs 4,000 as improving global sentiment, a weaker US dollar and hopes of easing tensions in West Asia lifted investor mood. While gold also remained firm, silver appeared to steal the spotlight this time, outperforming its more expensive cousin.
At around 3.15 pm, MCX was trading at Rs 276,075, up by Rs 4,229 during the session. The sharp jump came as investors reacted positively to signs of a possible US-Iran peace deal, which raised hopes of softer energy prices and reduced global uncertainty.
Silver often behaves differently from gold. While both metals are seen as safe-haven assets during uncertain times, silver also has strong industrial demand. It is widely used in sectors such as solar energy, electronics and electric vehicles.
This means silver tends to benefit not only from investor buying but also from optimism around economic growth.
On Monday, silver prices got an additional boost as the US dollar weakened. A softer dollar usually makes commodities like silver and gold cheaper for international buyers, increasing demand.
Another factor helping silver was the sharp fall in crude oil prices. Markets turned optimistic after reports suggested possible progress in peace talks between the US and Iran. If a deal is reached, it could ease fears over oil supply disruptions and help cool global energy prices.
The broader market also opened on a cautiously positive note. Falling crude oil prices, a stronger rupee and hopes of easing geopolitical tensions helped improve investor confidence.
With concerns around inflation and energy costs easing slightly, investors appeared more willing to take positions in metals like silver.
Experts believe silver is currently benefiting from a mix of safe-haven demand and improving market sentiment, something that is helping it shine brighter than gold in the near term.
Ponmudi R, CEO of Enrich Money, said silver has shown resilience despite ongoing market swings.
“MCX Silver opened with a mild gap up and is currently holding above the Rs 2,76,000 mark, reflecting steady price action amid ongoing volatility,” he said.
According to him, silver could see further upside if key levels are crossed.
“A sustained move above Rs 2,77,000 could help stabilise prices and trigger a recovery towards the Rs 2,79,000–Rs 2,80,000 range,” Ponmudi R explained.
However, he also warned investors to watch downside levels closely.
“On the downside, a break below Rs 2,73,000 may drag prices back towards the Rs 2,70,000–Rs 2,68,000 zone. The near-term bias remains cautious with a mildly positive undertone, while a decisive breakout above resistance levels is required to improve momentum further,” he added.
For now, silver’s direction may largely depend on geopolitical developments, especially talks between the US and Iran, movements in crude oil prices and the strength of the US dollar.
Ponmudi R noted that “safe-haven demand and geopolitical developments continue to influence direction”, suggesting that any major global update could quickly change the trend.
With silver gaining momentum and market sentiment improving, all eyes will now be on whether the metal can sustain its rally, and continue to outshine gold in the days ahead.