Expanding its gains for the fourth consecutive day, silver price rose by Rs 5,000 to hit a new record of Rs 99,500 per kg from the previous close of Rs 94,500 per kg on Friday.
According commodity market According to experts, the current bullish sentiment in the silver market is mainly due to industrial demand and the rally in gold.
Silver’s bullish momentum appears strong. Investors are likely to continue viewing dips as buying opportunities, keeping the white metal well supported in the coming sessions, they said.
Also, gold with 99.5 per cent purity rose by Rs 750 to hit a record high of Rs 80,250 per 10 grams. Metal with 99.5 per cent purity ended at Rs 79,500 per 10 gram, while gold with 99.9 per cent purity settled at Rs 79,900 per 10 gram on Friday.
Bullion dealers attributed the jump in gold prices to increased purchases by local jewelers to meet increased demand in the festive and wedding season. Furthermore, a positive trend in foreign markets as well as a decline in stock markets increased the attractiveness of gold as a safe haven, they added. In July, gold and silver prices corrected sharply by 7 percent in local markets after the government cut basic customs duties on gold and other metals.
However, bullion prices recovered as demand from Indian consumers increased due to the ongoing festivals.
In futures operations on the Multi-Commodity Exchange (MCX), gold contracts for December delivery rose by Rs 493 or 0.63 per cent to Rs 78,242 per 10 grams.
During the day, the precious metal had risen by Rs 591 or 0.76 per cent to hit a record high of Rs 78,340 per 10 grams.
Silver contracts for December delivery bounced Rs 2,822 or 2.96 per cent to hit a high of Rs 98,224 per kg.
“Silver prices have gained strong upward momentum. As gold prices soar, retail buyers are increasingly turning to silver, considering it a relatively cheaper alternative at these levels, especially now that gold It reaches 78,000 rupees for 10 grams.
“On the MCX, silver prices have risen to Rs 98,000, supported by Comex silver’s rise to $34 per ounce. A break of the $34 mark has sparked fresh buying interest in silver, as that market participants anticipate further gains,” Jateen Trivedi, said vice president of research analysis, commodities and currencies, LKP Securities.
Silver’s rise is being driven not only by its appeal as a more affordable precious metal, but also by growing demand from the electric vehicle (EV) sector and photovoltaic applications, which is expected to sustain global demand in the medium to long term. term, Trivedi. aggregate.
Globally, Comex gold futures rose 0.52 percent to $2,744.30 an ounce.
“Gold rose to another new all-time high, trading near the $2,730 level in European trading hours on Monday, boosted by safe-haven buying and prospects for continued monetary easing by Western central banks,” Saumil Gandhi, senior analyst. Commodities at HDFC Securities, he said.
In addition to geopolitical risks, investors are closely monitoring the upcoming US presidential election, contributing to the rise in bullion’s risk premium. Gold became a safe haven for buyers during a time of uncertainty, Gandhi added.
Meanwhile, silver futures rose 2.91 percent to hit a 12-year high of $34.20 an ounce in Asian market hours.
“Gold and silver hit another all-time high in the domestic market following overseas market cues, which were boosted by China’s 25 basis point rate cut, and with continued support from festive demand in some of the hubs.” Asians.
“Safe haven demand increased due to geopolitical uncertainty, buying among ETF investors and expectation of further rate cuts by global central banks,” said Pranav Mer, vice president of EBG – Commodity & Currency Research at JM Financial Services Ltd.
However, traders will remain a little cautious as a round of profit booking cannot be ruled out, Mer said.
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