Silver prices smashed a historic Rs 2 lakh/kg on MCX Friday, riding FOMC gains into 2026. Axis Mutual Fund flags risks from overvaluation—like weak physical demand, ETF outflows, and profit-taking—but keeps a constructive outlook. Corrections loom as valuations stretch, yet multiple tailwinds sustain the rally.

Axis Securities spots more upside: dips to Rs 1.7-1.78 lakh offer staggered buys, targeting Rs 2.4 lakh in 2026. Silver's broken a multi-year consolidation via a "massive 'Rounding Bottom breakout formation'" from 2011-2025 on monthly charts. Technicals glow—20-month and 60-month EMAs slope higher, with prices far above, signaling early-cycle strength. Advertisement

Risks persist: stronger US dollar, rising real yields, easing geopolitics, copper slumps, or rotations to energy/ag

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