Silver Price Rallies Aggressively 8% Globally, Indian Market Expecting Major Upside

Silver prices in the global markets rallied aggressively in global markets today, in trade. In the Comex, silver futures gained around 8%, and were quoted at US$ 20.57, as day-high. This trend is expected to impact Indian markets similarly tomorrow. In India, silver markets are already thriving as the US dollar started to cool down this week. Today the metal gained to Rs. 57,400/kg, gaining by Rs. 500.

Today's sudden surge in silver prices is a result of weak manufacturing activity data in the US. Silver and gold rates today gained as a safe haven concern. According to the latest report by the Institute for Supply Management (ISM) which showed that the manufacturing PMI slipped to 50.9% in September. It has missed expectations, even quoted lower than August's manufacturing PMI of 52.8%.

The ISM report noted that manufacturing activity is at its "lowest point since May 2020 when the global economy was roiled as nations implemented strict lockdown measures due to the Covid-19 pandemic". ISM highlighted growing weakness in important components of the economy, as new orders fell to 47.1%, down from August's reading of 51.3%. The employment scenario is also under pressure now. ISM informed that the Employment Index fell to 48.7%, down from August's level at 54.2%. However, the inflationary pressure is continuing to cool down, the Price Index dropped to 51.7%, down from August's reading of 52.5%.

Significantly, the US dollar index in the spot market stood at 111.73, down by 0.35%, today. In the Mumbai Commodity Exchange (MCX), silver September futures are quoted at Rs. 60446/kg, down by 6.31%. Hence, silver prices are expected to give a major upside ahead of the festive season in India.