Silver Price Hits ₹2.55 Lakh Per Kg Amid US Interest Rate Hike
The price of silver in India has continued to rise into the new trading week, reaching ₹2.55 lakh per kg on September 21. This represents a gain of 4.1% since September 11 and is driven by various market factors.
The recent increase in US interest rates by 25 basis points to 3.75%-4.00% has had an impact on the silver price, with higher rates generally being negative for precious metals. However, lower US interest rates and safe-haven flows are considered positive. The rupee-dollar exchange rate also plays a role in determining the international silver price.
Silver futures rose by 2.39% to $66.78 per ounce on September 18, according to international market data. In India, the MCX December silver contract saw an increase of ₹2,978 to ₹2,41,183 per kg on the same day.
The Silver Institute is projecting a sixth straight year of deficit in the silver market globally in 2026, driven by continued structural demand from technology and other industrial sectors. However, photovoltaic-related demand faces pressure from thrifting and substitution.