Silver marches towards lifetime high after scaling 32-month peak of Rs 75,009

Silver futures hit a 32-week high on Wednesday amid weakness in the greenback. Bullion prices have been on an uptrend this year as fears of an economic downturn loom on major economies. The trigger for the current rally was the poor economic data emerging from the US which led to the dollar slipping to a two-month low.

On Wednesday, May silver futures hit Rs 75,009 per kg on the intraday basis and were trading at Rs 74,841 at 11:20 am on the MCX, up Rs 389 or 0.52%.

May silver futures witnessed a strong rally in the holiday-shortened Tuesday’s session as this precious metal hit a level of Rs 74,700 per kg, its second-highest level ever before closing the day at Rs 74,650, up Rs 2,570 or 3.57%.

In the process, MCX silver futures are now trading at a 32-month high but lower than their all-time high of Rs 77,949 which it touched in August 2020, according to commodity and currency analyst at IIFL Securities Anuj Gupta.

He recommends buying May silver futures with a stop loss of Rs 67,000 and a price target of Rs 77,000-80,000.

Silver futures have gained nearly 7.61% on the year-to-date basis while 2.97% on the closing basis in April till Tuesday, Gupta informed. In value terms, the price appreciation is Rs 5,280 this year, while by Rs 2,146 in April alone.

Gold futures too traded with equal fervour and hit its all-time high of Rs 61,145 on Tuesday. Today, the April futures were trading at Rs 61,109 per 10 grams and were up by Rs 155 or 0.25%.Among triggers, dollar movement will be key to how gold and silver perform going ahead.

Weakness in the Dollar index makes dollar-priced commodities more appealing to holders of other currencies.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)