Silver prices inching towards 1 lakh/kg mark, Nippon India silver ETF rises nearly 6% today

Silver December futures on MCX today surged to a new lifetime high of Rs 98,224/kg after shooting up by Rs 2,800 or 3% today, getting closer to the Rs 1 lakh/kg mark.

Meanwhile, the Nippon India silver ETF rose 5.8% to its day’s high of Rs 95.

Silver prices on MCX settled positively on Friday as well, settling at Rs 95,402 per kilogram with a gain of 3.99%. In the current month so far, silver prices have shot up by Rs 7,500/ kg.

“Silver prices have gained strong upward momentum, with physical market prices surpassing Rs 1,00,000 per kg in India. As gold prices soar, retail buyers are increasingly turning to silver, viewing it as a relatively cheaper alternative at these levels, especially with gold now touching Rs 78,000 for 10 grams,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.

Further, the prices of March silver futures on MCX have already surpassed the Rs 1 lakh/kg mark today, making an all-time high of Rs 1,00,564/kg.

The rise in silver is being driven not only by its appeal as a more affordable precious metal but also by increasing demand from the electric vehicle (EV) sector and photovoltaic applications, which is expected to sustain global demand in the medium to long term, he added.Silver, or the white metal, demonstrated strong performance over the past week following the European Central Bank’s decision to cut interest rates in its recent monetary policy meeting.Additionally, the rising tensions in the Middle East and uncertainty surrounding the upcoming U.S. Presidential elections have contributed to the rally in the bullion.

“On the MCX, silver prices have surged to Rs 98,000, supported by Comex silver climbing to $34 per ounce. A breach of the $34 mark has triggered fresh buying interest in silver, as market participants anticipate further gains. In the short term, resistance for silver in MCX is seen at Rs 100,000, a key psychological level, while support is found around R 96,000- Rs 96,500,” Trivedi stated.

In the last week, silver prices hit a 12-year peak in international markets as well.

With the ongoing bullish sentiment in the silver market, primarily driven by industrial demand and gold’s rally, silver’s upward momentum appears strong.

Analysts believe that the investors are likely to continue to view dips as buying opportunities, keeping the white metal well-supported in the coming sessions.

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