NEW DELHI: Silver prices soared to breach the Rs 3 lakh-per kg-mark for the first time in futures trade on Monday, as escalating trade tariff tensions over Greenland and a weak US dollar boosted demand for the safe-haven asset.
On the Multi Commodity Exchange (MCX), silver futures zoomed by Rs 16,438, or nearly 6 per cent, to hit a record of Rs 3,04,200 per kilogram.
Over the past week, silver futures rallied by nearly 14 per cent, or Rs 35,037.
Since the beginning of 2026, it has rallied Rs 68,499, or 29 per cent, from Rs 2,35,701 per kilogram recorded on December 31, 2025.
Gold prices also strengthened in tandem, scaling fresh record highs. The yellow metal for the February contract advanced by Rs 2,983, or 2.09 per cent, to Rs 1,45,500 per 10 grams.
Over the previous week, gold added Rs 3,698, or 2.7 per cent,, on the MCX.
Both silver and gold have set new records, crossing Rs 3,00,000 per kg and Rs 1,45,000 per 10 grams, respectively, on the MCX, Satish Dondapati, Fund Manager, Kotak Mutual Fund, said.
He said the uptrend in precious metals was driven by persistent geopolitical uncertainty, a weaker US dollar, supply-side concerns and firm investment demand.
The announcement of tariffs by the US on a few European nations, following recent developments related to the Greenland issue, has also "lent price support", Dondapati added.
He noted that silver prices have surged over 170 per cent, while gold has gained over 70 per cent. Silver's dual role as both an industrial and investment metal gives it a unique advantage in the current macroeconomic scenario.
In the international market, Comex silver futures for March delivery jumped by USD 5.81, or 6.56 per cent, to hit a record of USD 94.35 per ounce.
Gold for February delivery also climbed by USD 102.6, or 2.23 per cent, to scale an all-time high of USD 4,698 per ounce.
On a weekly basis, silver gained USD 9.2, or 11.6 per cent, while gold added USD 94.5, or 2.09 per cent, as both metals benefited from a weaker greenback and escalating geopolitical tensions.
So far this year, silver has delivered 33.6 per cent returns to the investors in the overseas markets, rising from USD 70.60 per ounce at the end of 2025 to USD 94.35 per ounce.
"Silver has delivered nearly 30 per cent returns, mounting on the momentum of 2025. The white metal has reached around USD 94 per ounce, a level once considered unthinkable, driven by a 'perfect storm' of industrial scarcity and geopolitical shifts," Aamir Makda, Commodity & Currency Analyst, Choice Broking, said.
Makda added that silver's growing role as an industrial commodity is being powered by three key trends -- expanding solar photovoltaic capacity, increasing demand from electric vehicles and the surging demand for AI and data centre infrastructure reliant on silver-based components.