Silver amid a run-up in the precious metals has climbed a sharp over 2 per cent to breach levels of Rs 84,500 per kg levels very easily. In today’s session, Silver May futures marked a new high of Rs 84,668 per kg.

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While in the spot market, silver trades at Rs 84,010, up 1743 or 2.12 per cent.

At the time of writing this copy at 1:23 pm, silver MCX futures traded 1.85 per cent or Rs 1536 higher at Rs 84371 per kg.

Mirroring a trend in the international markets, silver too is seen gaining ground and has zoomed Rs 9168 or 12 per cent year-to-date (YTD).

Spot silver rose 2% to $29.04 per ounce, hitting its highest levels since Feb 2021.

"As with past precious metal price rallies, silver will outperform gold once it breaks out. We are already seeing customers privy to this behaviour positing themselves in silver in past months," Vincent Tie, sales manager at dealer Silver Bullion is quoted as saying in a Reuters report.

The steep gains in the precious metal come even as bond yields continue to trend on the higher side and there remains low chances of a rate cut in June by the Federal Reserve given the sticky inflation figure data released in the US lately.

Internationally, silver is said to be adding to its price performance on renewed investor interest in Silver ETFs, noted a leading publication. In addition, positive manufacturing data in China, a top consumer of the metal, also strengthened the demand outlook for the commodity.

"The surge in silver prices has been remarkable, today prices tested Rs 84500 level on MCX, with the metal poised to test Rs 90000 in short to medium term, possibly even might reach 1 Lakh soon," said Rahul Kalantri, VP- Commodities, Mehta Equities. This rally has been fuelled by a convergence of factors, including firmness in gold and base metal prices, which supported by central bank buying and anticipation the U.S. Federal Reserve’s interest rate cut, geopolitical tensions and market specific dynamics have contributed to the upward trajectory of silver prices. 

Technical indicators suggest a strong momentum for silver, with positive Chinese services PMI data and closely correlated movement with gold prices. The gold-silver ration also reveals insights into future price movement, enhancing silver’s attractiveness to investors, he added.