Silver Prices Surge Amid Geopolitical Tensions and Industrial Demand

Silver Prices Surge Amid Geopolitical Tensions and Industrial Demand

On February 27, 2026, silver prices experienced a significant surge, reflecting a confluence of geopolitical uncertainties and robust industrial demand. The spot price of silver reached $92.06 per ounce, marking a $4.99 increase from the previous day and a substantial gain over the past year. Source

Price Action

Silver's upward trajectory was evident across various markets. On the Multi Commodity Exchange (MCX), silver futures for March 2026 delivery climbed ₹8,340, or 3.2%, to settle at ₹2,68,009 per kilogram. This movement brought domestic silver prices close to the ₹2.7 lakh threshold. In contrast, gold futures for April 2026 delivery rose ₹482, or 0.3%, to ₹1,60,191 per 10 grams. Source

Macroeconomic Drivers

Several factors contributed to the surge in silver prices:

• Geopolitical Tensions: Ongoing uncertainty in U.S.-Iran nuclear negotiations heightened safe-haven demand for precious metals. The extension of talks without a clear breakthrough kept geopolitical tensions elevated, influencing investor sentiment. Source
• Industrial Demand: The silver market is projected to face a sixth consecutive year of structural deficit in 2026, with a shortfall of 67 million ounces. This persistent imbalance is driven by industrial consumption outpacing physical production, particularly in sectors like electronics and solar energy. Source

Technical Signals

Analysts observed key technical indicators supporting the bullish momentum in silver:

• Breakout Levels: Silver's decisive move above the $90 per ounce mark attracted fresh buying from momentum traders and short-covering flows. This breakout suggests potential for further gains toward the $100 per ounce level. Source
• Support Zones: Strong buying interest is visible in the $70–$75 support zone. A sustained recovery above $92–$96 may re-establish upward momentum toward $100–$105. Source

Investor Sentiment

Investor sentiment remains bullish, driven by a combination of safe-haven demand and industrial consumption. The silver market's structural deficit, coupled with geopolitical uncertainties, has reinforced its appeal as both an investment and industrial commodity. Analysts suggest that the current momentum could lead to silver testing the $100 per ounce level in the near future. Source

In summary, silver's recent price surge is underpinned by a complex interplay of geopolitical events, industrial demand, and technical market signals. Investors are advised to monitor these developments closely, as they are likely to influence silver's trajectory in the coming months.