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Silver prices: The spike comes as investors flock to safer assets following escalating conflict between Israel and Iran. The geopolitical uncertainty, coupled with a weakening rupee, has strengthened silver's appeal among Indian investors.
By Anshul June 18, 2025, 9:30:11 AM IST (Published)
Silver prices hit a record high of ₹1.10 lakh per kg on the Multi Commodity Exchange (MCX) on Wednesday, June 18. This sharp rise of ₹100 from the previous day reflects growing investor demand for safe-haven assets amid heightened geopolitical tensions.
July futures on the MCX traded at ₹1.08 per kg earlier in the day, marking a 2.28% gain. In global markets, silver prices crossed $37.23 per troy ounce — levels not seen since February 2012.
The spike comes as investors flock to safer assets following escalating conflict between Israel and Iran. The geopolitical uncertainty, coupled with a weakening rupee, has strengthened silver's appeal among Indian investors.
“Gold and silver prices saw high fluctuations amid geopolitical tensions. Silver broke above $37 an ounce for the first time in over a decade. Weakness in the rupee is also supporting silver in domestic markets,” said Rahul Kalantri, VP Commodities at Mehta Equities.
Kalantri noted that silver has immediate resistance at ₹1.09 lakh-₹1.10 lakh per kg and support at ₹1.08 lakh-₹1.07 lakh per kg.
Silver is often seen as a lower-cost alternative to gold for both investment and jewellery purposes. Its appeal rises especially when gold prices surge, drawing interest from retail and institutional buyers alike.
“We have recommended aggressive accumulation in silver,” said Sandip Raichura, Executive Director and CEO, Retail and Distribution at PL Capital Group. “Given the uncertain global outlook — from Iran-Israel tensions to US-China trade strains — silver may revisit previous highs in the coming weeks.”
In contrast to silver’s rally, gold remained mixed. Global gold prices faced pressure from weak retail sales data in the US and a slowdown in Chinese gold buying. Domestically, gold futures were supported by currency weakness but failed to match silver’s momentum.
Meanwhile, crude oil also traded higher at $75 per barrel, its highest level since January. The Israel-Iran conflict has kept the market on edge, though Iran’s oil infrastructure remains untouched so far.
