Silver price today: Silver crosses Rs 1.91 lakh mark; hits new lifetime high

Silver futures surged to fresh records Wednesday—MCX March silver rose Rs 3,736 (1.98%) to Rs 191,800/kg and Comex March silver hit $62.14/oz (up $1.30, 2.14%), a 6.4% two-session gain—supported by tight supplies, shrinking inventories and heavy ETF inflows (iShares added 324 tonnes last week). Gold was relatively muted (MCX Feb +Rs173, 0.13% to Rs 130,280/10g) as markets positioned for the US Federal Reserve decision, where traders largely expect a 25bps cut and are seeking guidance through 2026. Market commentators highlight silver’s addition to the US critical-minerals list and continued central-bank gold buying (China raised holdings for a 13th month to ~74.12m troy oz) as structural supports that could sustain upside if the Fed signals easing.

Analysis

Silver futures set fresh records on Wednesday with MCX March silver rising Rs 3,736 (1.98%) to Rs 191,800/kg and Comex March silver touching $62.14/oz, up $1.30 (2.14%) and 6.4% over two sessions from $58.40/oz; MCX gold was relatively muted, rising Rs 173 (0.13%) to Rs 130,280/10g while Comex gold hovered around the $4,200/oz area. The immediate rally is driven by tight supplies and shrinking inventories cited by market participants, complemented by large ETF inflows—iShares added 324 tonnes last week, its largest weekly addition since July. Market positioning is also sensitive to US monetary policy expectations; traders largely price a 25bp Fed rate cut and are awaiting the Fed statement and Powell commentary, though analysts warn Powell may remain cautious given ongoing inflation pressures. Structural supports cited include silver's addition to the US critical-minerals list and continued central-bank gold purchases (China increased holdings for a 13th month to about 74.12 million troy ounces), which underpin a bullish backdrop but leave the near-term path contingent on Fed signalling and inventory data.

Key Decisions for Investors

• Consider tactical long exposure to silver via liquid ETFs or short-dated futures to capture near-term upside from expected Fed easing and tight supplies, while keeping position sizes modest given recent rapid gains
• Use explicit risk controls such as stop-losses or bought-put options because the two-session 6.4% move and heavy ETF inflows increase the risk of a sharp pullback if the Fed signals caution or inflation surprises to the upside
• Monitor iShares ETF flows, Comex inventories and the Fed statement/Powell remarks as primary triggers for re-rating, and trim or take profits on further parabolic moves to lock gains
• Maintain a defensive allocation to gold as central-bank buying (including China) supports a baseline safe-haven bid even if silver outperforms in the near term