Silver rebounds sharply but remains well below January peak

Silver prices have staged a strong recovery in domestic and international markets, rebounding after a sharp correction from record highs earlier this year, though analysts caution that the metal remains in a volatile consolidation phase.

On the Multi Commodity Exchange (MCX), silver climbed about 3.5 per cent to Rs 2,44,955 per kg by Friday afternoon. The rally followed gains in the previous session, when March futures rose by more than Rs 4,500.

Globally, silver on the COMEX advanced to around $78 per ounce, extending its recent upswing. The move has been supported by safe-haven demand, geopolitical tensions — including renewed strains between the US and Iran — and resilient American economic data.

Despite the bounce, prices remain far below their late-January highs. MCX silver had touched an all-time peak of nearly Rs 3.8 lakh per kg on 29 January 2026, while international prices had surged above $120 per ounce during the same period.

For retail investors, the recent price action can best be described as consolidation. After a powerful rally and a steep correction, silver is now trading within a broad range — roughly Rs 2.3–Rs 2.5 lakh per kg on MCX and $73–$80 on COMEX — as markets digest global developments.

Analysts note that while the longer-term trend remains structurally positive, the short term is characterised by sharp swings driven by geopolitical headlines, currency movements and shifting expectations around US interest rates.

Ponmudi R, chief executive of Enrich Money, said global silver has found solid buying interest in the $65–$70 range, which aligns with long-term support levels. A sustained move above $85–$92 could revive bullish momentum towards $95–$105, he said, although volatility is likely to persist.

Domestically, market participants see a support base forming in the Rs 2.25–Rs 2.35 lakh range. Holding above this band is considered crucial for maintaining medium-term stability. A decisive upward move could eventually open the path towards Rs 3 lakh and beyond, while a break below support may prolong the corrective phase.

Experts broadly agree that the current trend reflects consolidation rather than structural weakness. Downside risks are being cushioned by safe-haven buying and central bank interest, but short-term fluctuations remain intense.

Analysts recommend staggered purchases — investing in small amounts over time — instead of attempting to time market highs or lows. Strict risk management is also advised, given the likelihood of continued choppy trading.

In simple terms, silver remains expensive compared with a year ago, but after its dramatic correction it appears to be stabilising. For those considering exposure, it is best viewed as a long-term, inherently volatile asset rather than a short-term trading bet.

With agency inputs