Chennai silver prices soar past Rs 2 lakh/kg amid strong festive demand. More highs in sight?
According to data available on Goodreturns, silver prices in Chennai saw a sharp spike from the start of the month. On October 1, silver was priced at Rs 1,61,000 per kg. As of October 16, the price had climbed to Rs 2,06,000, representing a 27.95% increase over the fortnight.
The highest rate in October was Rs 2,07,000, recorded just a day earlier on October 15.
In terms of daily price movement, Goodreturns data also shows that silver rates fell slightly from Rs 2,07,000 per kg on October 15 to Rs 2,06,000 on October 16, indicating a Rs 1,000 correction. Price per gram also edged down from Rs 207 to Rs 206, while rates for 10 grams slipped from Rs 2,070 to Rs 2,060.
The price of silver for various standard weights in Chennai on October 16 was as follows: Rs 1,648 for 8 grams, Rs 2,060 for 10 grams, Rs 20,600 for 100 grams, and Rs 2,06,000 for 1 kilogram. All these figures reflect a decline from the previous day, when corresponding prices were Rs 1,656, Rs 2,070, Rs 20,700, and Rs 2,07,000 respectively.
Silver prices are influenced by several factors, including global bullion trends, changes in duties, and investor activity.
As Dhanteras approaches, physical silver demand is likely to remain under watch, with buyers reportedly opting for silverware, coins, and lightweight jewellery in place of higher-value gold items.
Is the rally likely to continue?
MCX Silver (Dec) is trading near Rs 1,64,000/kg, buoyed by supply squeeze in the London market, festive physical demand, firm COMEX prices, and a weakening rupee. Global cues remain supportive with silver holding above $53/oz on safe-haven flows, amid Middle East tensions and Fed rate pause expectations.
Jigar Trivedi, Senior Research Analyst – Currencies & Commodities at Reliance Securities, believes that strong domestic buying ahead of Dhanteras and Diwali could push MCX silver towards Rs 1,70,000–Rs 1,75,000.
However, he noted that Rs 2 lakh looks stretched unless there’s a sharp rally in global prices or USDINR touches 90/$.
“Technically, silver faces resistance at Rs 1,65,000/kg and support at Rs 1,50,000/kg. Momentum is positive, but profit-booking may emerge at higher levels. Stay cautiously bullish. The calendar year-end target is not ruled out to be 1,85,000/kg on the MCX. Having said that, a sharp technical correction is also not ruled out,” Trivedi added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)