“Silver being an industrial metal, may benefit from upside in base metals and bullish sentiments in emerging market equities. So, we expect silver to trade with a positive bias benefiting from enhanced industrial applications. Hence, an extended slowdown in the Chinese economy is one of the major risks to our outlook. Silver prices may trade in a range of Rs 75,000 – 92,000 in the next 3 months,” said Kaynat Chainwala, Senior Manager of Commodities Research at Kotak Securities.
In the longer term, brokerages like Motilal Oswal see the metal rallying to fresh peaks of Rs 1 lakh.
Over the last 15 days alone, silver prices on the MCX have seen a stellar rally of more than Rs 7,000 per kg.
“Prices now can be seen trading in a rising channel with constant higher top and higher bottom formation and presently hovering around Rs 87,200/kg levels. We expect an upside of Rs 90,000-91,000/kg in the coming weeks where any dip around Rs 85,500/kg would provide an opportunity to add more quantity in the long positions,” said Ashwani Harit, Commodities Analyst, Religare Broking.Also read: Silver prices hit all-time high of Rs 87,476, jump Rs 6,600 in May so farProspects of a soft landing in the US and broader applications in the clean energy sector could mean more upside for silver prices in the coming months compared to gold. According to a recent report by the International Energy Agency (IEA), global investment in solar PV manufacturing, a major demand driver for silver, more than doubled last year to around $80 billion, constituting approximately 40% of global investment in clean technology manufacturing.
Comex and MCX Silver posted gains of 2.7% and 4.4%, respectively in this week so far. Comex silver prices breached the crucial $30/oz mark, for the first time since 2013 and MCX prices hit an all-time high, driven by optimism regarding stimulus for property markets and mounting expectations of a rate cut in September.
“Traders should be prepared for a potential surge in silver prices, especially upon breaching the crucial threshold of $30 in the international market. Our analysis strongly suggests that if silver manages to sustain its position above the $30 benchmark, it could see a fresh bull run of 7-10%,” stated Rahul Kalantri, VP – Commodities at Mehta Equities.
Conversely, failure to secure a close above $30 might see downward pressure, potentially leading to corrective movements towards the $28.50 and $27.90 levels. On MCX, the critical level lies at the 88,550 level, which stands as a pivotal make-or-break point for silver, Mehta added.
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