A remarkable 260% surge in silver imports was seen in February, marking a significant milestone in the metal’s upward trend. Analysts credit this increase to various factors such as increased industrial demand and growing geopolitical tensions. Amit Gupta, a researcher at Kedia Advisory, weighed in on the matter, commenting: “As gold rallied, people are now moving towards silver, resulting in higher imports. Consumption in industrial use has also improved.”
Amidst a backdrop of resilient gold prices influenced by central bank activity and anticipation surrounding the US Federal Reserve’s policy meeting minutes and inflation data, the spotlight has shifted towards silver. Today, silver prices reached the Rs 82,849 mark on the Multi Commodity Exchange (MCX), signaling an unwavering upward momentum that could potentially propel the metal past the Rs 95,000 milestone in the medium to long term, with the potential to even breach Rs 1 lakh soon.
This surge is driven by a combination of factors, including robust economic indicators, geopolitical tensions, and market-specific dynamics. The resurgence in industrial demand, particularly from China, has significantly contributed to the bolstering of silver prices. As the Chinese economy displays signs of improvement, the demand for silver in sectors such as electronics, solar energy, and healthcare has experienced a notable uptick.
Moreover, India’s record-high silver imports in February underscore a growing appetite for the metal, fueled by reduced duties and substantial purchases from the United Arab Emirates. Geopolitical uncertainties, including the Russia-Ukraine conflict and tensions in the Middle East, have intensified market volatility, prompting investors to turn to assets like silver. Additionally, technical indicators indicate strong momentum for silver, further supported by positive Chinese service PMI data and a closely correlated movement with gold prices.
ALSO READ
Nifty Next 50 Emerges As India’s Premier Stock Index For Earnings Potential
