On India's Multi Commodity Exchange, silver futures rose 0.62% to Rs 2,37,387 per kilogram, while physical silver in Delhi held at Rs 2,49,900 per kilogram, unchanged across major cities.
Technically, spot silver is testing the 100-day exponential moving average near $66.33 after bouncing from a mid-$63 low on Friday. Momentum indicators remain constructive, with the RSI near 61 and MACD histogram in positive territory, though a sustained break above $66.80 is seen as needed to open the path toward the 38.2% Fibonacci level at $67.93.
Underpinning the longer-term bull case, China's solar manufacturing boom has driven record industrial demand for silver, with the metal climbing 70% over the past year even as gold and bitcoin attracted more headlines. The Silver Institute's Michael DiRienzo has argued that structural supply deficits have established substantially higher price floors.
Yet the industrial outlook remains a two-edged sword. Higher prices risk demand destruction among fabricators, and some analysts warn that silver's rally has been more speculative than fundamental, with the gold-silver ratio poised to widen. UBS has flagged the risk of industrial cutbacks when prices surge, while HSBC sees silver as fundamentally overvalued.
Geopolitical tension adds another layer. The U.S.-Iran standoff and weekend strikes on Lebanon have kept safe-haven bids alive, though Middle Eastern producers continue moving crude through the Strait of Hormuz, capping oil-driven inflation fears.