Pakistan Mercantile Exchange suspends silver futures as prices hit record highs

The Pakistan Mercantile Exchange (PMEX) has temporarily suspended trading in all silver futures contracts following unprecedented price movements and significant order imbalances, the exchange has announced.

In an official statement, PMEX said all open positions will be settled or closed at prevailing settlement prices, while pending orders have been cancelled until further notice.

The exchange also confirmed that market making in silver futures has been temporarily suspended at the request of market makers, in accordance with Regulation 21.5(2) of the PMEX Rulebook. As a result, once trading resumes, orders will be matched only between buyers and sellers, without designated liquidity providers.

Sharp rise in silver prices

The decision comes amid exceptional volatility in silver prices, both globally and domestically. International silver prices have surged to historic highs, briefly trading above $110 per ounce, driven by heightened geopolitical uncertainty, strong industrial demand, and increased speculative activity.

In Pakistan’s local market, silver prices have mirrored the global rally, with rates climbing above PKR 11,000 per tola, while prices per 10 grams have fluctuated sharply amid intraday swings. Market participants reported unusually wide bid-ask spreads and rapid price changes during the trading session.

Silver has outperformed other precious metals in early 2026, posting steeper percentage gains than gold. Analysts attribute the rally to a combination of safe-haven demand, rising use in renewable energy and electronics, and constrained global supply.

However, they caution that the pace of recent gains has increased the risk of abrupt corrections.

PMEX has not yet indicated when silver futures trading will resume. Traders and investors have been advised to closely monitor official exchange announcements as market conditions stabilize.