spot silver surged past $90 an ounce for the first time on Wednesday, driven by softer US inflation data that reinforced expectations of Federal Reserve interest rate cuts in 2026 amid persistent geopolitical tensions and supply constraints. Silver prices rose over 3 per cent to $90 per ounce by 0308 GMT.
The rally followed US core CPI data showing a 0.2 per cent monthly increase, below the expected 0.3 per cent, with the annual rate holding steady at 2.6 per cent. “Markets now anticipate two to three rate cuts by the Fed in 2026,” according to Rahul Kalantri, VP Commodities at Mehta Equities Ltd. The softer inflation print bolstered safe-haven demand for precious metals alongside civil unrest in Iran and heightened geopolitical risks.
Silver has experienced a historic surge in 2025, rising approximately 161 per cent year-to-date after hitting a record high of $86.62 in late December. The metal has since resumed its upward trajectory, outpacing gold’s 66 per cent gain and traditional assets including Bitcoin and the S&P 500.
“COMEX Silver is trading firm near $89.60, registering fresh higher highs on a near-daily basis,” noted Ponmudi R, CEO of Enrich Money. The rally is underpinned by structural factors including silver’s designation as a US critical mineral and a global supply deficit estimated at 2,500 tonnes annually. Industrial demand, particularly from solar panels, electric vehicles, and AI infrastructure, accounts for roughly 50 per cent of consumption, while supply remains constrained.
China’s new export restrictions, requiring licenses for companies producing at least 80 tonnes annually, could widen the global deficit to 5,000 tonnes. ETF inflows have resumed since May 2025 after years of liquidation, while inventories in London, China, and the US have fallen to multi-year lows.
On mcxsilver traded around ₹2,86,000, with Kalantri citing support at ₹2,69,810 and resistance at ₹2,84,470.
Published on January 14, 2026