New Delhi

Silver prices surged to an unprecedented level in the futures market on Monday, crossing the Rs 3 lakh per kilogram mark for the first time, supported by heightened tariff-related tensions linked to Greenland and a weakening US dollar that boosted safe-haven buying.

On the Multi Commodity Exchange (MCX), silver contracts jumped by Rs 16,438, or nearly 6 per cent, to touch a lifetime high of Rs 3,04,200 per kg. Over the past week alone, silver futures have risen by nearly 14 per cent, gaining Rs 35,037.

Since the start of 2026, the white metal has rallied sharply, climbing Rs 68,499 or about 29 per cent from its December 31, 2025 closing level of Rs 2,35,701 per kg.

Gold prices mirrored the strength in silver, scaling fresh record highs on the MCX. The February gold contract advanced Rs 2,983, or 2.09 per cent, to Rs 1,45,500 per 10 grams. Over the previous week, gold prices have increased by Rs 3,698, or 2.7 per cent.

Both precious metals have registered new all-time highs on the MCX, with silver crossing Rs 3 lakh per kg and gold breaching Rs 1,45,000 per 10 grams, said Satish Dondapati, Fund Manager at Kotak Mutual Fund.

According to him, the rally in precious metals has been driven by ongoing geopolitical uncertainty, a softer US dollar, supply constraints and sustained investment demand. He added that recent tariff announcements by the United States against select European countries, following developments related to Greenland, have further supported prices.

Dondapati noted that silver has gained more than 170 per cent over the past few years, while gold has risen over 70 per cent, adding that silver’s dual role as both an industrial metal and an investment asset has strengthened its appeal in the current macroeconomic environment.

In global markets, Comex silver futures for March delivery jumped USD 5.81, or 6.56 per cent, to reach a record high of USD 94.35 per ounce. Gold futures for February delivery also climbed USD 102.6, or 2.23 per cent, to an all-time high of USD 4,698 per ounce.

On a weekly basis, silver gained USD 9.2, or 11.6 per cent, while gold added USD 94.5, or 2.09 per cent, supported by a weakening dollar and rising geopolitical risks.

So far in 2026, silver has delivered returns of about 33.6 per cent in overseas markets, rising from USD 70.60 per ounce at the end of last year to USD 94.35 per ounce.

“Silver has extended the strong momentum built in 2025, delivering nearly 30 per cent returns so far this year. Prices have climbed to around USD 94 per ounce — levels once thought improbable — driven by a perfect mix of industrial supply tightness and geopolitical realignments,” said Aamir Makda, Commodity and Currency Analyst at Choice Broking.

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Makda added that silver’s growing industrial relevance is being fuelled by expanding solar photovoltaic installations, rising electric vehicle adoption and increasing demand from artificial intelligence and data centre infrastructure that rely heavily on silver-based components.