Silver prices witnessed a dramatic surge in Indian markets on Monday, January 5, 2026, propelled by escalating geopolitical tensions following a military strike by the United States on Venezuela. The precious metal's domestic price skyrocketed, reflecting heightened global uncertainty and supply fears.
Sharp Rally in Domestic and International Markets
On the Multi Commodity Exchange (MCX), silver futures for March delivery opened strong and climbed to an intraday high of ₹2,49,900 per kilogram. This marked a significant jump of approximately ₹13,500 from the previous session's closing level of ₹2,36,316 per kg.
The bullish momentum was mirrored on the international front. Globally, silver rates opened with a noticeable upside gap, soaring to an intraday peak of $75.968 per ounce. This represented a gain of nearly 6% from the prior close, underscoring the intense buying pressure in the wake of the weekend's events.
Geopolitical Trigger: The US-Venezuela Conflict
The primary catalyst for the sharp price movement was a shocking military development. On the morning of Saturday, January 3, 2026, the United States executed a large-scale attack on Venezuela.
In a post on Truth Social, former US President Donald Trump stated, "The United States of America has successfully carried out a large-scale strike against Venezuela and its leader, President Nicolas Maduro, who has been, along with his wife, captured and flown out of the Country."
Market experts immediately began factoring in the potential repercussions for commodity flows. The conflict has raised serious concerns about possible disruptions to silver shipments from key exporting nations. Peru and Chad, which are among the world's largest silver exporters in global merchandise trade, are now seen as potential flashpoints for supply chain issues, further fueling the price rally.
Expert View: Market Outlook and Investment Advice
Commenting on the silver price outlook, Ponmudi R, CEO of Enrich Money, noted that MCX Silver was trading near ₹2,45,275, extending its recovery after recent volatility. He observed that the bullish chart pattern remains intact, with every price dip attracting fresh buying interest.
"A sustained move above ₹2,42,000 strengthens the upside bias, opening the path toward ₹2,46,000–₹2,55,000," Ponmudi said.
On the critical question of whether it is the right time to invest, the expert offered a nuanced perspective. He pointed out that the current scenario, marked by extreme volatility, also favors profit-booking by short-term traders.
However, Ponmudi added, "The overall structure continues to favor accumulation over profit-booking, positioning silver as a high-volatility yet high-reward companion to gold within the ongoing bullion bull cycle."
This analysis suggests that for investors with a higher risk appetite and a longer-term horizon, strategic accumulation during dips could be a viable approach, albeit within a portfolio carefully balanced for such volatility.
Disclaimer: This market analysis is for informational and educational purposes only. Readers are strongly advised to consult with a certified investment advisor before making any financial decisions.
