Silver Price Hike: Silver prices surged by ₹20,000 in one fell swoop; why did the price rise? Experts explain 3 reasons.

Following US President Donald Trump's announcement of global tariffs, silver prices saw a significant surge at the start of the trading week. Surprising investors, silver prices surged by nearly ₹20,000 in a single day.

While MCX saw a rise of over ₹13,000, data from the Indian Bullion Jewelers Association (IBJA) showed silver jumping by approximately ₹19,986 to reach a new high.

What are the latest silver prices?

Silver for March 5 delivery on the Multi Commodity Exchange (MCX) today surged 4.65%, rising ₹11,756 to ₹2,64,700 (silver rate today) per kilogram.

During trading, its low was ₹2,60,028 and high was ₹2,68,875 (silver price today). Whereas during the previous trading session, it closed at Rs 2,52,944.

On Friday, the price of silver on IBJA was Rs 2,45,564 per kilogram. Today, it increased to Rs 2,65,550 per kilogram, meaning a gain of nearly Rs 20,000 in one go.

Meanwhile, the global market saw a jump of about 5 percent by 3 pm, and the price increased by $4.10 to cross $86 per ounce.

Ajay Kedia explained three major reasons for the surge.

Now the big question is why the sudden surge in silver prices? Ajay Kedia, Director of Kedia Advisory, explained three major reasons for this.

1. Expiration Effect
The expiration of silver futures contracts is near. Short covering often occurs at the time of expiry, which leads to a sharp rise in prices. The same trend was observed this time too.

2. China's Lunar New Year is over. China is the world's largest consumer of commodities. Industrial demand revives after the Lunar New Year holidays. This has led to expectations of increased demand for silver, leading to higher prices.

3. US-China Tensions and Trump Tariffs
Donald Trump's global tariff announcement has deepened fears of a trade war. Escalating US-China tensions have driven investors toward safe havens. Along with gold, safe haven buying has also increased in silver.

Silver Target Price 2026: Ajay Kedia gives target price

Ajay Kedia believes that market volatility may persist for the time being. If geopolitical tensions and tariff disputes escalate, silver may experience sharp fluctuations. However, profit-booking at higher levels is also possible. He believes that silver could touch ₹290,000 in the coming days.