Silver prices have recently seen significant fluctuations, reaching as high as $27.33 before a slight decline to $27.05. Analysts suggest that the price may drop to $28.60 before making another attempt to reach the $30 mark. David Scutt from City Index cautions against making heavy bets on silver's rise due to ongoing resistance levels. The recent economic data has also influenced silver's performance, contributing to its recent downtrend. On Wednesday, silver closed lower and continued its decline on Friday, dropping below $29. Potential short trade targets have been identified at $28.77, $28.046, and $27.269. [dcb779b4]
Corey Maita, founder of MintID, discusses the current state of the precious metals market, attributing the recent rally in silver prices to strong market fundamentals and increased demand. He expresses optimism about silver's potential to reach $30 per ounce, emphasizing the importance of building a higher base price for long-term growth. MintID addresses counterfeiting in the industry by utilizing near-field communication (NFC) technology and AES 128-bit encryption to verify the authenticity of precious metals products. Maita acknowledges counterfeiting as a growing problem and highlights the importance of tamper-resistant features in restoring consumer confidence. MintID's products are available for purchase on the Money Metals Exchange website. [49b563ff]
In the domestic market, silver prices are at lifetime highs amid multiple catalysts such as safe-haven demand due to escalating geopolitical tensions, hopes of US interest rate cuts, speculative buying, and a sharp rally in industrial metals. On the MCX futures platform, prices reached an all-time high of Rs 84,515/kg last week, gaining about 12% in the last two weeks. The ongoing momentum-driven buying is likely to extend in the immediate run, driven by a robust rally in gold. Expectations of interest rate cuts, escalating geopolitical tensions, and enduring inflation concerns could help prices stay firm. However, fresh lifetime highs in the international market are less likely. [412b40c9]
According to a Motilal Oswal Financial Services' Quarterly report, silver is likely to see some profit booking at certain intervals, but any major dips could be used as buying opportunities. The report revises targets higher from Rs 1,00,000 to ₹1,25,000 on the domestic front and $40 on Comex from a 12–15-month perspective. China's impact on silver is significant as it is one of the largest consumers and producers of industrial metals. Geopolitical tensions and economic uncertainty, especially during an election year in the US, could boost the safe-haven appeal for silver. The Silver Institute forecast report also indicates that total demand for silver is expected to grow by ~2% from 2023 to 2024, with industrial demand being the highest. Total supply is expected to fall by ~1% from 2023 to 2024, with mine production expected to decrease by 1% in 2024. The market balance for silver is projected to remain in deficit, contributing to potentially higher prices as demand outpaces supply. [318a311a]
A report by Motilal Oswal highlights rising silver demand and supply constraints driven by geopolitical tensions. Silver is expected to gain demand by 2% in 2024, with supply lagging behind, potentially driving prices higher. Total silver supply is expected to decrease by about 1%, while demand for silver is anticipated to outstrip supply for the fourth consecutive year, creating a persistent market deficit that could drive prices upward. Recent data indicates a 70% probability of a rate cut in the upcoming September Fed meeting, which could support precious metals. Ongoing conflicts and economic uncertainty have increased risk premiums in financial markets, making safe haven assets more appealing to investors. The potential for economic unpredictability in the United States could further enhance silver's appeal as a safe haven asset. [7366933d]