Silver Hits Another Strong Breakout as Market Conditions Shift

Silver Hits a new milestone in the global commodities market as the metal moved past its previous records and continued its upward movement through the week. The strong rally is driven by global expectations of an upcoming rate cut by the US Federal Reserve along with tightening supplies in key markets. The latest rise pushed Comex silver (December delivery) above the $56 per ounce mark, touching a lifetime high of $56.26 per ounce. This sudden rise has renewed interest in precious metals as investors look for safer positions ahead of major economic changes expected in December.

On the domestic front, silver futures on the Multi-Commodity Exchange also recorded sharp gains. Contracts for March 2026 delivery moved up by more than ₹9,400, rising nearly 6% to reach a fresh high of ₹1,75,484 per kilogram. Silver futures expiring in December also hit a new level at ₹1,72,077 per kilogram, crossing the earlier record made in October 2025. With back-to-back highs across global and Indian markets, the white metal has gained renewed momentum that traders have been tracking closely.

Silver Hits New Levels Fueled by Rate Cut Hopes and Supply Tightness

The recent economic data from the US has played a major role in strengthening the metal’s rally. Market trackers reported that investors now expect an almost 87% chance that the Federal Reserve may approve a rate cut in December. This expectation has been building for weeks, and the latest market readings only added more strength to the possibility. Lower interest rates generally weaken the dollar and make precious metals more attractive as alternative stores of value.

Another factor shaping silver’s movement is the speculation around leadership changes within the US Federal Reserve. Reports suggest that Kevin Hassett, known for his preference toward softer interest rates, has moved ahead as the likely replacement for Jerome Powell. Any shift in leadership combined with the growing push for lower rates is adding more direction to investor sentiment.

At the same time, global supply developments have further tightened the market. China, one of the major players in the silver ecosystem, reported that its silver inventories dropped to their lowest level in ten years. To manage the shortage, China exported nearly 660 tonnes of silver to London, a move aimed at easing the supply stress that pushed silver to record levels earlier in October. The reduction in inventories, combined with strong demand across trading hubs, has kept prices elevated and expectations firm.

Silver Hits Higher Ground as Gold Follows the Uptrend

The rising strength in silver also influenced gold, which recorded gains across domestic and international markets. On the MCX, gold futures for February 2026 delivery went up by ₹1,626 to trade at ₹1,29,293 per 10 grams. This rise, though smaller than silver’s movement, reflects the broader trend where investors are choosing precious metals as global currency conditions soften.

In the international market, Comex gold for February 2026 expiry marked a similar rise, reaching $4,241.90 per ounce after a $39.60 gain. The upward trend in both metals is also supported by the mild weakening of the US dollar index, which slipped by 0.08% to 99.52. A softer dollar typically strengthens metals, as they become more accessible for investors trading in other currencies.

Silver Hits Momentum That May Continue into December

As traders look ahead, the behaviour of silver will likely depend on the official outcome of the Federal Reserve’s December policy meeting, the movement of global inventories and currency conditions. With multiple factors supporting the metal’s rise from supply challenges to policy expectations the sentiment around silver remains firm. The rising interest in commodities as a protection against volatility continues to push both domestic and global investors toward metals. Also Read: An Indian company Meesho Moves Toward a $606 Million IPO, Marking a Bold Moment in India’s E-Commerce Story

Silver’s current rally is different from earlier movements because it is being driven by multiple forces at the same time. The combination of falling inventories, steady demand, global uncertainty and an expected rate cut has created a unique setup that has allowed silver to touch levels not seen before. If any new supply challenges emerge or economic expectations shift further, the momentum may continue moving into early next year as well.

Conclusion

Silver Hits another record as global demand, supply limits and policy expectations push prices upward across markets. With strong domestic gains and firm international momentum, the metal remains in focus as traders watch the upcoming policy decisions and global economic signals.