Silver has surged past the psychological level of Rs 1 lakh per kg, outperforming all other asset classes including buoyant gold that has gone past the 80,000 per 10 gram level in the national capital.
Silver was sold at Rs 1,01,000 per kg in the national capital on Monday, October 28. Since last Diwali on November 10, silver prices have jumped over 42% from Rs 71,000 per kg in Delhi. In comparison, gold prices have surged by over 30% to Rs 80,450 per 10 grams in the national capital since last Diwali.
What’s behind the rally in silver prices?
“Silver is extensively utilized in electronics, solar panels, batteries, and increasingly in semiconductors making it a critical component in modern technology. The growing industrial demand for silver along with the anticipation of another rate cut by the Federal Reserve is causing an increase, in the metals market value,” according to Vishnu Kant Upadhyay, AVP – Research and Advisory at Master Capital Services Ltd.
Also read: Gold rate today on October 28 in Delhi, Mumbai, Kolkata, Chennai: Here are latest gold, silver prices in your city
The metal has gained significant upward momentum, as gold prices surge and retail buyers increasingly turn to silver, seeing it as a more affordable alternative at current levels, he added.
Ongoing geopolitical tensions and the risk of economic instability among global economies are also driving investors toward precious metals like silver.
“Gold and silver are frequently seen as a haven during difficult times, offering defense against inflation and market instability,” Upadhyay said.
“Silver prices have surged to a significant psychological level of 100,000 on domestic exchanges, in line with global trends where Comex silver is trading near its highest point since October 2012. Recently, prices broke out above the neckline resistance of an inverse head and shoulder pattern, accompanied by a notable rise in trading volumes, signaling increased buying interest among market participants,” Upadhyay said, adding that prices are currently holding above their short-term moving averages, the 21 and 55-day EMAs, further supporting the likelihood of continued upward momentum. “We anticipate prices to move higher, potentially reaching 110,000 and 120,000 in the near future.”
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