Record Rally In Silver, Jumps By Rs 10,900 In 10-Days, Crosses 1 Lakh Mark In This City

Silver prices have been witnessing sharp rally for some time now. In last 10-days only, 1kg silver prices have already surged by Rs 10,900 to Rs 97,700 on May 29, 2024. The prices of silver have already crossed 1-lakh mark in Chennai where 1kg silver prices are retailing at Rs 1,02,200. Silver price in India was recorded at Rs 78, 600 on January 1, 2024 and today the price is Rs 97,700. From January 1, 2024 to May 29, 2024, silver prices have rallied by Rs 19,100 barely in 4-months or by 24.3%.

In last 10-days, silver prices declined by Rs 6,200 in India. Silver prices today surged by Rs 1200 to settle at Rs 97,700.

Spot Silver Price Today: Spot silver declined 0.4% to $31.99, platinum was down 0.7% to $1,056.06 and palladium gained 0.6% to $978.47.

Market experts say that the ongoing weakness in US dollar led to rally in silver and gold prices. Meanwhile, the US GDP and PCE data will be released on Thursday and market experts are anticipating the data to be flat which will remain positive for bullion market.

Anuj Gupta, Head of Commodity & Currency at HDFC Securities said, "Gold and silver prices are appreciating due to the weak US dollar. The US dollar index has come below the 105 mark, lending support to lower prices of gold and silver at lower levels. Apart from this, US GDP data is expected on Thursday. The market expects flat US GDP data on Thursday, which may spark buzz about the US Fed rate cut. The core PCE data is also expected flat on Thursday."
According to Reuters report, "a softer U.S. core PCE release would make the job easier for gold to reclaim the $2,400 level, given the possible rate-cut timing implications," said Tim Waterer, chief market analyst at KCM Trade in a note.

1kg Silver price India movement in last 10-days

Silver prices today jumped by Rs 1200, rallied by Rs 3500 on May 28, surged by Rs 1500 on May 27, slipped by Rs 500 on May 25, dived by Rs 500 on May 24, fell sharply by Rs 3300 on May 23, rallied by Rs 1200 on May 22, fell by Rs 1900 on May 21, and jumped by Rs 3500 on May 20.

Several factors contributed towards the sharp rally in silver prices in last few months. According to reports, lower landing costs coupled with potential of strong jump in silver rates led to massive imports of the metal in past four to five months period. It led to supply overhang that caused lower prices of the metal in India as compared to global markets. According to Motilal Oswal, "in last four months, silver imports in India were in abundance... About 2000 tonnes. The market was flooded with imported silver."

The rally in silver prices occurred due to the metal's rising industrial usage and in jewellery sector. Motilal Oswal expects silver to outperform gold in the next few years.

Additionally, UBS has also updated its outlook for silver prices, anticipating further growth due to robust industrial demand and a potential undersupply in the market.

The financial services firm increased its silver forecasts by $4 per ounce across various future dates, anticipating the metal to reach $34 per ounce by the end of September, $36 per ounce by the end of 2024, and maintain that level through the end of March 2025.

Moreover, UBS introduced a new forecast for the end of June 2025, setting the target at $38 per ounce.
Industry demand exerts its influence on the prices of silver as the metal is used in the production of several types of commodities such as TV, solar panels, batteries, medals, coins, computers, jewellery, etc.

There are several factors that may impact prices of silver in India. These may include import duties, fluctuation in US Dollar Index, oil prices, trade deficit, inflation, and gold prices, among others. Gold prices also impact prices of silver. When yellow metal prices rise, silver prices tend to follow same pattern, and any decline in gold prices will also cause dip in silver prices too. India is ranked at number third in terms of silver consumption after US and Japan as these two countries are the biggest consumers of the metal.