Silver’s Strong Rally
Silver on MCX surged past ₹85,000 per kg today, marking a 6-month high as investors increasingly seek refuge in precious metals amid growing global economic uncertainty.
Current Price Levels
- MCX Silver (Mar): ₹85,420/kg
- Spot Silver: $31.25/oz
- Day Change: +2.3%
- Weekly Change: +5.8%
Key Drivers Behind the Rally
The white metal’s impressive run is being fueled by multiple factors:
- Safe Haven Demand: Rising geopolitical tensions pushing investors toward precious metals
- Industrial Demand: Strong demand from solar panel and electronics manufacturers
- Weak Dollar: The US dollar index trading near 3-month lows
- ETF Inflows: Silver ETFs seeing consistent inflows over the past two weeks
Technical Outlook
From a technical perspective, silver looks bullish:
- Price trading above all major moving averages (20, 50, 100 DMA)
- RSI at 62 - healthy momentum without overbought conditions
- Strong support formed at ₹82,000 level
- Next resistance at ₹87,500, then psychological ₹90,000
Gold-Silver Ratio
The gold-silver ratio currently stands at 82:1, which historically suggests silver is undervalued relative to gold. A ratio above 80 has often preceded silver outperformance.
Market Sentiment
Traders and analysts remain bullish on silver for the near term:
- MCX Open Interest: Up 8% week-over-week
- CFTC Positioning: Net longs at 3-month highs
- Dealer Survey: 65% bullish, 25% neutral, 10% bearish
Our Take
Silver’s fundamentals look strong with both investment and industrial demand supporting prices. The breakout above ₹85,000 opens the door for a test of ₹90,000 in the coming weeks. However, profit booking near these levels is normal - accumulate on dips toward ₹82,000-83,000 for better risk-reward.
Disclaimer: Commodity trading involves substantial risk. This is not investment advice. Please consult your financial advisor before trading.