Will silver prices hit ₹2 lakh per kg this year?
What's the story
The prices of gold and silver in India have witnessed a remarkable surge this year. As of early December, gold has gained a whopping 66% year-to-date, while silver has jumped an impressive 85%. The rally is fueled by expectations of a US Federal Reserve rate cut, a weaker dollar, and a depreciating Indian rupee. Silver has particularly outperformed gold during this period. So, can it hit ₹2 lakh per kg this year? Let's see.
Market correction
Gold and silver prices witness profit booking
Today, both gold and silver prices opened lower on the Multi Commodity Exchange (MCX) as traders booked profits after a sharp rally in the previous session. MCX gold opened 0.41% lower at ₹1,30,109 per 10g while MCX silver started 0.73% down at ₹1,80,701 per kg. The correction comes after gold hit a six-week high on Monday, amid expectations of an interest rate cut by the US Federal Reserve this month and speculation over changes in its leadership.
Currency impact
Weak rupee further fuels precious metal prices
The weakening of the Indian rupee, which recently hit record lows against the US dollar, has also contributed to the rise in gold and silver prices. A weaker currency makes imports costlier, driving up domestic prices for these commodities. Globally, the dollar index fell to 99.43, down 0.03%, offering further support to dollar-denominated commodities such as gold and silver.
Performance comparison
Silver outperforms gold in recent months
In the last three months, gold has gained some 25%, while silver prices have skyrocketed by over 40%. This is due to a tightening physical supply and expectations of looser global monetary policy. With silver prices already more than doubling in 2025, and currently trading above ₹1.80 lakh per kg on MCX, investor focus has now shifted to whether the white metal can hit ₹2 lakh per kg this year.
Expert opinion
Silver's structural momentum remains intact
Sugandha Sachdeva, Founder of SS WealthStreet, believes silver's structural momentum remains firmly intact. She said, "Silver has dramatically outperformed, marking its seventh consecutive monthly gain and hitting a record high of ₹1,75,484 per kg in the March contract." Sachdeva also pointed out that international spot silver breached its long-standing resistance, surging to $56.53 per ounce, comfortably easing past the earlier ceiling of $54.46 per ounce due to massive industrial demand.
Strategic value
US adds silver to 2025 critical minerals list
The US has added silver to its 2025 critical minerals list, highlighting its strategic value in clean-energy technologies. This move indicates that major economies will prioritize domestic needs before exports. Brokerage house Motilal Oswal also expects the rally to continue well into 2026, projecting silver could rise to $75 per ounce due to a deepening global supply deficit and soaring industrial consumption.