Silver crosses Rs 2.5 lakh/kg for the first time. Can this rally go any further?

Silver stole the spotlight on Monday as prices on the futures market soared to new record highs. The March silver contract rose sharply by Rs 14,000, or 5.7%, to hit a new peak of Rs 2,54,174 per kilogram. Notably, this was the first time silver breached the Rs 2.50 lakh level in the Indian futures market, underscoring the strong bullish momentum the white metal has built in recent weeks.The rally was not limited to domestic markets. Internationally, silver briefly breached the $80 per ounce mark for the first time before retreating amid increased volatility.

Meanwhile, gold also extended its record streak. February gold futures opened at Rs 1,40,319 per 10 gram on the MCX, up above Rs 400, or around 0.3%, from the previous close. The yellow metal continues to gain ground, supported by safe-haven demand, global macroeconomic signals and expectations of rate cuts in major economies.Domestically, silver futures rose 7.15% on Friday with the March contract settling at Rs 2,39,787 per kilogram on the MCX, reflecting strong momentum for precious metals.

Gold, meanwhile, also ended the session higher, although gains were relatively modest. The February gold futures contract closed at Rs 1,39,873 per 10 gram, up 1.29%.

Both metals hit record highs in domestic and global markets last week, supported by continued safe-haven buying, a weakening dollar and expectations of monetary easing from the US Federal Reserve.

China’s proposed export restrictions, expected to come into effect from January 1, 2026, are adding fuel to the silver rally and have attracted a lot of attention. According to Manoj Kumar Jain of Prithvifinmart Commodity Research, this move has “sparked a record rally in silver,” along with renewed geopolitical tensions between the US and Venezuela. Globally, the US Dollar Index (DXY) continued its decline for the fifth consecutive week, hovering around 98 points. The weakening dollar remains a major tailwind for precious metals prices as it increases the appeal of dollar-denominated assets such as gold and silver.

“Shift of investor attention from riskier assets to safe havens amid global uncertainties continues to support precious metals prices,” Jain said.

Gold and Silver Trading Strategy: Key Levels to Watch

Jain advises avoiding short positions in both gold and silver amid the prevailing bullish trend.

For gold, he recommends accumulating in the range of Rs 1,40,000 – Rs 1,38,800, with a stop loss of Rs 1,36,600. Upside targets are between Rs 1,42,000 and 1,44,400.

Silver, on the other hand, can be gathered on dips in the range of Rs 2,40,000-2,30,000, with a stop loss of Rs 2,18,800. Upside targets are placed between Rs 2,50,000 and Rs 2,62,000.

Immediate technical level

– Gold: Support from Rs 1,38,200-1,37,000; resistance at Rs 1,40,750-1,41,500
– Silver: Support at Rs 2,35,000-2,30,500; resistance at Rs 2,50,000–2,62,000

Gold rates in physical markets

Gold Price Today in Delhi

Standard gold (22 carat) costs Rs 1,05,088 per 8 grams, while pure gold (24 carat) costs Rs 1,13,232 per 8 grams.

Gold Price Today in Mumbai

Standard gold (22 carat) costs Rs 1,04,384 per 8 grams, while pure gold (24 carat) costs Rs 1,12,392 per 8 grams.

Gold Price Today in Chennai

Standard gold (22 carat) costs Rs 1,04,416 per 8 grams, while pure gold (24 carat) costs Rs 1,12,528 per 8 grams.

Gold Price Today in Hyderabad

Standard gold (22 carat) costs Rs 1,04,592 per 8 grams, while pure gold (24 carat) costs Rs 1,12,704 per 8 grams.

(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times)