Silver Prices Jump 7% in India Amid Global Tensions

Silver Price Today: Metal Surges Over 7% in India as Global Tensions and Weak Rupee Fuel Rally

Prime Synapse | Commodities | January 27

Silver prices extended their sharp upward momentum on Monday, hitting record levels in the Indian market as investors rushed toward safe-haven assets amid rising geopolitical uncertainty. The rally, which mirrors heightened volatility across global commodity markets, was supported by a combination of a weakening rupee, strong industrial demand, and aggressive speculative positioning.

According to data released by the India Bullion and Jewellers Association (IBJA), silver was priced at ₹3,42,507 per kilogram at around 12:30 pm, marking a steep 7.38% jump from its previous close of ₹3,18,960 recorded on January 23. This move represents one of the sharpest single-day gains in recent years and signals growing investor unease over global economic and political developments.

MCX Futures Touch Fresh Peak

The surge was even more pronounced in the derivatives market. On the Multi Commodity Exchange (MCX), silver futures climbed to an all-time high of ₹3,68,398 per kilogram during afternoon trade. Market participants noted unusually high volumes, indicating strong participation from both institutional and retail traders.

Commodity dealers said the rally was driven not just by safe-haven buying but also by momentum-based trading, as prices broke through multiple technical resistance levels in quick succession.

Global Market Dynamics

In the international market, Comex spot silver traded near $113 per ounce. While this marked a 2.15% decline from the previous session’s close, prices remain historically elevated, reflecting sustained global demand and tight supply expectations.

Analysts point out that silver is currently benefiting from its dual role as both a precious metal and an industrial commodity. Demand from sectors such as renewable energy, electronics, and electric vehicles continues to grow, adding a structural layer of support to prices.

Rupee Weakness Adds Fuel

The Indian rupee’s depreciation further amplified the price rise in domestic markets. On Monday, the rupee was trading at 91.63 against the US dollar, down 0.04% from its previous close. A weaker currency increases the landed cost of imported commodities, including silver, making domestic prices more sensitive to global price movements.

Currency strategists believe that persistent global risk aversion and capital outflows from emerging markets could keep the rupee under pressure in the near term, indirectly supporting bullion prices.

How Silver Prices Have Moved

Silver has been on a relentless upward trajectory over the past few weeks, gaining sharply as investors reassess risk exposure across asset classes. Market participants note that the pace of the rally has accelerated recently, suggesting a shift from cautious accumulation to aggressive buying.

While short-term volatility cannot be ruled out, the broader trend continues to favour the bulls.

Outlook: What’s Next for Silver?

According to a market note released by Augmont Bullion on January 27, silver has already met key international price targets at $100 and $107 per ounce. The report suggests that prices may enter a brief consolidation phase before resuming their upward march toward $120 per ounce, which translates to approximately ₹3,90,000 per kilogram in the Indian market.

The report identifies $103 (₹3,40,000) as a crucial support level. A sustained break below this could trigger a corrective move toward $100 and $97, though analysts view such declines as potential buying opportunities rather than trend reversals.

Geopolitical Risks Drive Safe-Haven Demand

Renewed geopolitical tensions have emerged as a major catalyst behind the rally. Recent policy announcements from the United States have rattled global markets. Former US President Donald Trump issued a warning of a 100% tariff on Canadian imports over a potential trade arrangement with China. Additionally, tariffs of 25% were announced on South Korean automobiles, pharmaceuticals, and lumber, raising fears of a broader trade confrontation.

“These developments have reignited demand for precious metals as investors look to hedge against policy uncertainty and trade-related risks,” the Augmont report noted.

Structural Support from New Investors

Beyond short-term triggers, market experts highlight a deeper structural shift. A growing base of first-time investors—particularly across Asia and Europe—is increasingly allocating capital to physical gold and silver. This trend has added long-term support to prices and reduced the likelihood of sharp, sustained corrections.

“For precious metals in 2025, policy uncertainty remains the dominant driver,” the report said. “The steady build-up of personal holdings is creating a solid floor for silver prices.”

Bottom Line

Silver’s sharp rise underscores the growing appeal of precious metals in an uncertain global environment. While volatility is expected to remain high, strong fundamentals, geopolitical risks, and currency pressures suggest that silver could continue to outperform in the months ahead.