Silver Prices Surge to Rs 3.5 Lakh: Top Jewellers Warn FM Sitharam
India’s top jewellers have expressed serious concerns regarding the recent surge in silver prices. This increase on the Multi Commodity Exchange (MCX) has prompted action from the All India Jewellers & Goldsmith Federation (AIJGF). In a letter to Finance Minister Nirmala Sitharaman dated January 21, they highlighted that silver prices were trading approximately Rs 40,000 per kg above the standard benchmark.
Concerns over Price Dislocation
The AIJGF’s letter, signed by its national president Pankaj Arora and national general secretary Nitin Kedia, attributed this “sharp and sudden dislocation” to rumors concerning a possible hike in import duty on silver.
MCX Response to Market Volatility
In response, a spokesperson for MCX addressed the volatility of silver markets, citing evolving geopolitical factors as a primary cause. They emphasized that the prices on the MCX provide a hedge against currency fluctuations, local market dynamics, and duties. MCX also reaffirmed its commitment to maintaining a strong surveillance mechanism that adheres to regulatory standards.
ETF Market Reactions
On one particular Thursday, both silver and gold exchange-traded funds (ETFs) faced significant drops of up to 20% but later recovered to close roughly 11% lower. On the MCX, silver contracts for March delivery finished down by 2.7%, while February gold contracts fell by 0.8%.
Market Recovery Amid Global Tensions
Following these fluctuations, Friday brought a notable rebound in precious metals. Gold and silver prices surged due to ongoing geopolitical tensions, a weaker U.S. dollar, and market expectations of an interest rate cut by the Federal Reserve. The upcoming Federal Open Market Committee meeting on January 27 is highly anticipated by investors.
Current Silver and Gold Prices
As of January 2026, MCX gold futures for February delivery rose by Rs 2,885, reaching Rs 1,59,226 per 10 grams. Meanwhile, silver futures for March delivery soared by Rs 12,638, reaching a new peak of Rs 3,39,927 per kg.
Global Market Trends
International markets mirrored these trends. Spot gold gained 0.5%, trading at $4,961.57 per ounce after briefly reaching a record $4,966.59. U.S. gold futures for February increased by 1.1%, hitting $4,964.60 per ounce. Spot silver also saw a jump of 0.9%, reaching $97.01 per ounce after touching a high of $97.44 earlier in the day.
Future Projections
Goldman Sachs has recently adjusted its end-2026 gold price forecast, raising it to $5,400 per ounce, up from $4,900. This adjustment is attributed to a structural shift in demand, primarily influenced by private investors and central banks in emerging markets. Over the past year, gold has increased significantly, soaring by 64% in 2025, with retractions closely trailing behind in 2026.
- Current Gold Price: Rs 1,59,226 per 10 grams
- Current Silver Price: Rs 3,39,927 per kg
- Gold Forecast: $5,400 per ounce by end-2026
