Silver touches all-time high of ₹1.07L per kg
What's the story
Silver prices surged sharply today, hitting a lifetime high of ₹1,07,425 per kg for July futures contracts on the Multi Commodity Exchange (MCX). The September futures contracts also touched an all-time high of ₹1,08,700 per kg today. The rise is largely attributed to speculation over an impending rate cut by the US Federal Reserve.
Market impact
Today's silver price in India
The domestic market has also witnessed a major spike in silver prices. According to data from Investorgain, the average price of silver in India today stands at ₹1,10,000 per kg. This surge is evident in both futures contracts and the domestic market.
External factors
Geopolitical tensions, weak rupee bolster silver prices
The jump in silver prices can also be attributed to rising geopolitical tensions in the oil-rich Middle East. Manoj Kumar Jain, Director of Prithvi Finmart, said, "Weakness in the rupee could also support prices of gold and silver. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and geopolitical tensions."
Price prediction
Axis Securities' take on future targets for silver prices
Axis Securities has also weighed in on the future trajectory of silver prices. They said, "A sustained move above ₹107,400 would clear the way for the next targets at ₹111,000 and ₹113,000." However, they also cautioned that "on the downside, ₹102,000 is now the key structural support; a close below it could invite a deeper pullback."