Silver Market Sharply Bullish, Surges Rs. 4000 In 4 Days, Globally 2.3% Up Intraday: Buy?

The Indian silver market is showing a sharp rise in the past four days, and surged by around Rs. 4000/1 kg, due to the global economic scenario. Silver rate, on July 30, was quoted at Rs. 5840/100 grams, gaining by Rs. 40/100 grams. Following the global trend, the precious metal has also surged in the country. In June silver rates dropped by 3.30% in India, however, in July the metal revived marginally. Additionally, a falling US Dollar index is also pushing the silver rates to gain.

Similar to gold, the silver market is also bullish now after the interest rate hike by the US Fed. The central bank of the US has raised its rate by 75bps to combat the inflation rate, however, the market absorbed the in-line rate hike. A more hawkish stance by the US Fed could possibly affect the silver market.

Today, in the Comex futures market, silver was quoted at $20.335 gaining by 2.35%, and yesterday the metal closed at $19.868. In the past 1 year, in Comex silver prices have fallen sharply by 21.52%. In the spot market, silver prices stood at $20.44, surging by 1.65%. Significantly, the US dollar index in the spot market stood at 105.87. In the Mumbai Commodity Exchange (MCX), silver September futures are quoted at Rs. 58352/kg, gaining by 1.27%.

Commenting on the global silver market, analyst Phillip Streible told Kitco News, "While August tends to be one of the lightest volume trading months during the calendar year, this year may be different. September Silver broke out above critical resistance at $19.88 and is now targeting the monthly consolidation range of $21-23/ounce. When we trade back into that range, you will want to take a more proactive approach in risk management. Remember, no assets are long-term in this economic environment."

Today's silver rates in important Indian cities:

City	Silver rate (100 grams)
Mumbai	Rs. 5840
Delhi	Rs. 5840
Ahmedabad	Rs. 5840
Kolkata	Rs. 5840
Chennai	Rs. 6370
Bangalore	Rs. 6370
Hyderabad	Rs. 6370