Silver price today jumps over Rs 5,000 to Rs 2.71 lakh/kg on MCX amid global rally

Silver prices recorded a sharp rise in futures trade on Tuesday, jumping by more than Rs 5,000 per kilogram to cross the Rs 2.71 lakh mark on the Multi Commodity Exchange (MCX). The rally was driven by strong gains in global markets as investors closely monitored developments in West Asia and awaited key US economic data later this week.

On the MCX, silver futures climbed Rs 5,054, or 1.9 per cent, to Rs 2,71,217 per kg, with a trading volume of 10,497 lots.

Market analysts said the white metal rebounded from recent lows as traders adopted a cautious approach ahead of ongoing diplomatic efforts in the Middle East. According to Renisha Chainani, Head of Research at Augmont, investors have shifted to a wait-and-watch mode amid uncertainty surrounding regional peace talks.

The latest silver price rally comes despite a limited ceasefire announcement between Israel and Iran-backed Hezbollah in Lebanon. While the development offered some relief to markets, broader geopolitical risks in the region continued to support safe-haven demand.

Analysts noted that market participants had expected progress toward a 60-day ceasefire extension over the weekend. However, negotiations failed to produce an agreement, with both sides maintaining their positions, keeping uncertainty elevated.

Global cues also boosted sentiment. In the international market, Comex silver futures for July delivery surged nearly 3 per cent to USD 77.21 per ounce in New York, providing additional support to domestic prices.

Investors are now turning their attention to major US economic indicators, including the closely watched nonfarm payrolls report and employment data scheduled for release later this week. The reports are expected to offer fresh insights into the strength of the US labour market at a time when inflation concerns remain in focus.

Market participants are also awaiting comments from key US Federal Reserve officials, including Cleveland Fed President Beth Hammack and Fed Governor Michael Barr, for signals on the future path of monetary policy.

Chainani said market expectations regarding US interest rates have shifted significantly in recent weeks. Traders who had previously anticipated rate cuts are now increasingly pricing in the possibility of another rate hike, reflecting concerns that rising energy prices linked to the West Asia conflict could push inflation higher.

With PTI inputs