Silver Prices India, Oct 21: Silver Rates Jump By Rs 4200 In 9 Days

Silver prices in India witnessed a rally of Rs 1200 today to Rs 75,300. Prices of silver recorded a surge of Rs 4200 in just last 9 days beginning from October 11 with the highest jump on October 14 when prices rose by Rs 1500. Physical demand of the metal is likely to soar in India in the coming days due to festival season that may support silver prices.

In Chennai, 1 kg of the metal is selling for Rs 78,700 on Saturday. In Delhi, you need to pay Rs 75,300 to buy 1 kg of silver while in Mumbai, the metal is retailing for Rs 75,300 as well. In Kolkata, you have to shell out Rs 75,300 for 1 kg of silver.

Factors That Impact Prices of Silver: 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. India fulfills its requirement of silver by importing it from United Kingdom, EU, Australia, China, and Dubai. Import from China accounts over half of all imports in India. The leading importing centre in India include Mumbai, Ahmedabad, and Jaipur.

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.

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.

Why Silver Is Less expensive In India? Due to vast range of silver application in India, it has emerged as a popular metal in the country. Therefore, it is a far more common commodity in India than yellow metal. Familiarity of silver in India has resulted in lesser rates for the metal if compared with gold prices. Additionally, silver imports have been progressively soaring as compared to import of gold.

Manoj Kumar Jain of Prithvifinmart Commodity Research feels yellow metal and silver prices may stay volatile this week as he said gold prices likely to hold $1,884 per troy ounce and silver prices can also hold $21.80 per troy ounce levels. "Gold has support at $1,922-1,910, while resistance at $1,945-1,958 per troy ounce. Silver has support at $22.84-22.55, while resistance is at $23.20-23.55 per troy ounce," added Manoj Kumar Jain.

Meanwhile, prices of gold too witnessed a surge of Rs 200 in India. Current market price of 22 carat of 10 grams gold in India is Rs 56,600 after surge of Rs 200 while price of 24 carat of 10 grams of yellow metal in India is Rs 61,750 after the gain of Rs 220.

Gold prices hit a three-month high on Friday and were set for a second straight weekly gain, with demand bolstered by the Middle East conflict and expectations that the Federal Reserve's rate hikes are nearing an end, according to Reuters.

"Gold prices were supported as fears of another Fed rate hike in 2023 subside. We remain neutral towards gold prices for 2023, expecting prices to average $1,950/oz," as per Fitch Solutions.