A weakening rupee further amplified domestic prices.
Global tailwinds fuel the upside
International prices firmed on expectations of monetary easing in major economies, persistent geopolitical tensions, and renewed investor interest in precious metals.
Silver, which carries both safe-haven and industrial appeal, has outperformed several asset classes this year.
Market participants say the recent gains reflect a combination of currency weakness and strong overseas cues. With the rupee under pressure, imported commodities like silver tend to become costlier, translating into higher local prices.
Industrial demand provides a structural push
Beyond its haven status, silver is being buoyed by sustained industrial consumption. Applications in solar panels, electronics, semiconductors, and electric vehicles continue to deepen its role in the green energy and technology ecosystem.
Analysts point out that this dual character—precious metal plus industrial metal—has strengthened investor conviction.
The Axis Mutual Fund report notes that silver’s long-term growth story is anchored in clean energy transitions and manufacturing demand worldwide.
Investment flows add momentum
Investor interest has remained robust, with silver-backed exchange products attracting strong inflows and bullish positions in futures markets.
Market trackers highlight that sentiment has stayed positive despite volatility in other asset classes.
Outlook: Supportive but volatile
Analysts expect the metal to stay firm in the near term, supported by global demand and currency-led price strength in India. However, any recovery in the rupee or shift in interest rate expectations could trigger short-term corrections.
–With Reuters inputs