Silver Prices Near Record High as Global Demand and Fed Outlook Boost Momentum

Silver surged worldwide on Friday, inching closer to its all-time high as strong industrial demand, tightening supplies, and expectations of a US Federal Reserve rate cut fueled market optimism. Globally, spot silver climbed 1.4% to $54.18 per ounce—just below its historic peak of $54.50—marking an impressive 7.4% rise for the week.

The upbeat trend reflected strongly in India as well, where silver held firm at Rs 173 per gram and Rs 1.73 lakh per kilogram. Retail investors and jewellers continued active buying, anticipating further gains amid positive sentiment in precious metals. Analysts highlighted the combination of robust industrial use—especially from sectors like solar, electronics, and battery manufacturing—and consistent investment demand as the primary drivers of the rally.

The domestic futures market also echoed the bullishness. On the MCX, the December silver contract climbed Rs 1,183 (0.73%) to Rs 1,63,650 per kg, while the March 2026 contract rose Rs 1,373 (0.83%) to Rs 1,67,360 per kg, showing strong participation across lots. Experts noted that despite the quiet global cues owing to the US Thanksgiving break, silver continued to trade steadily near lifetime highs.

Market watchers said the surge is backed by “real demand” rather than speculation. With traders assigning an 87% probability to a Fed rate cut in December, expectations of a softer US dollar have further strengthened silver’s appeal. Analysts believe the metal will stay well-supported in the near term as tight supplies meet rising industrial requirements and a more dovish monetary outlook.