New Delhi: Silver prices were largely flat on Monday, edging up 0.1 per cent to Rs 1,56,755 per kilogramme, roughly 8 per cent below recent peak levels, as analysts cautioned that profit-booking could push prices lower.
On its last trading day on MCX on October 17, silver futures fell sharply, losing nearly 10 per cent from session highs. Prices dropped from a high of Rs 1,70,415 per kg to a low of Rs 1,53,700, before closing at Rs 1,57,300, marking a 0.44 per cent gain from the previous session.
Globally, silver prices fell from a record high of nearly $54 an ounce to approximately $51.50, a decline of about 6 per cent. Analysts attributed the fall to reduced safe-haven demand after easing US-China trade tensions, with US President Donald Trump acknowledging that proposed additional tariffs were unsustainable.
Motilal Oswal noted that silver is currently undergoing a major structural revaluation, distinguishing the present rally from past speculative cycles. The brokerage highlighted that the metal’s volatility, roughly 1.7 times that of gold, indicates a fundamentally stronger rally than speculative bursts seen in 1980 or 2011.
Industrial demand has also supported silver prices. Increased usage in solar panels, electronics, and electric mobility, alongside easing liquidity constraints in the London silver market and rising bond yields, has pressured non-yielding assets such as precious metals.
According to MP Financial Advisory Services, silver’s role as an industrial input may help it surpass the $50 per ounce mark. “Thanks to industrial demand, silver has the required merits to cross over $50 this time,” the report said.
Since November 2022, silver prices have risen from $24 an ounce to around $47, driven by strong industrial consumption and steady investor interest.
IANS
