The rally gathered additional momentum this week after MCX silver futures broke previous the psychological Rs 3 lakh per kg mark. In as we speak’s session, costs jumped over 2.5%, or practically Rs 8,000, to Rs 3,19,949 per kg. The most recent spike was pushed by renewed issues between the US and the European Union after US President Donald Trump threatened to amass Greenland and impose punitive tariffs on Europe. Right here’s what consultants are saying.
“Silver at $94 per troy ounce, a degree as soon as thought of unthinkable, is pushed by a “excellent storm” of commercial shortage and geopolitical shifts. Taking a look at Technical charts, we expect additional upward momentum in Silver and quick help could be at 20-DEMA degree positioned at Rs 255,100, says Aamir Makda, Commodity and Forex Analyst at Alternative Broking, advised ETMarkets.
Though in current classes, with a value up transfer, a bearish RSI divergence has emerged, and it’s a traditional “Pink flag” warning, says Makda. It means that whereas the worth continues to be climbing and hitting new peaks, the inner momentum driving these positive factors is definitely weakening. Together with this, we are able to see the autumn in OI ranges to 9850 heaps parallel to price-rise to this point within the March contract, which suggests a Lengthy unwinding in Silver. Merchants who have already got lengthy positions ought to search for a profit-booking at present ranges, he added.
Jigar Trivedi, Senior Analyst at Reliance Securities additionally echoed the same view, suggesting that some time-based consolidation is on the playing cards within the close to time period; nevertheless, given the prevailing political and geopolitical backdrop, the present rally may lengthen towards the psychological degree of $100 per ounce, because the broader undertone within the worldwide market stays decisively bullish. That mentioned, the danger–reward equation seems evenly balanced at 1:1, contemplating the sharp run-up over the previous 13–14 months. In rupee phrases, Rs 3,30,000 per kg is seen as the subsequent key resistance degree, he added.
From an funding perspective, this breakout will not be merely a short-term spike however a part of a broader structural uptrend supported by provide constraints and sturdy industrial demand, significantly in photo voltaic, electronics, and electrical automobiles. Whereas elevated ranges introduce heightened volatility, buyers ought to give attention to strategic positioning slightly than chasing document highs. Tactical profit-taking close to these peaks is smart for short-term merchants, however for long-term buyers, silver stays a compelling hedge in opposition to inflation and market uncertainty, says Justin Khoo, Senior Market Analyst at VT Market.Total, the advice is to purchase on significant dips and maintain core positions, protecting allocations balanced with threat administration in thoughts, Khoo added. The development favors continued upside, however disciplined entry and exit stay crucial at these traditionally excessive ranges.Akshat Garg, Head of Analysis and Product at Alternative Wealth mentioned new buyers ought to take into account including Silver ETFs as a part of a diversified multi-asset portfolio to learn from the steel’s sturdy structural drivers, whereas present buyers ought to keep away from exiting at present ranges because the underlying help stays intact.
Consultants say new buyers might have a look at allocating 5–10% to silver and gold ETFs inside a broader multi-asset framework, treating the publicity as diversification slightly than a momentum commerce, Garg mentioned. Current holders ought to keep invested via volatility, as institutional flows, ETF participation, and long-term fundamentals stay supportive, with self-discipline and conviction prone to matter greater than short-term market timing via 2026.
Silver stands out on account of its twin position as a financial hedge and an industrial steel, with over half of its demand now coming from purposes reminiscent of solar energy, electrical automobiles, knowledge centres and electrification. Persistent provide deficits, pushed by constrained mine output and recycling, level to a good market construction, positioning silver to doubtlessly outperform gold throughout progress phases whereas nonetheless providing safety in unstable intervals.
(Disclaimer: The suggestions, solutions, views, and opinions given by the consultants are their very own. These don’t symbolize the views of The Financial Occasions.)
