Silver futures touch Rs 60,000 after 2 months

Silver crossed the Rs 60,000-mark in Indian futures markets after two months, on the back of economic uncertainties in the US and euro zone. Gold, too, touched an all-time high on Indian and international markets.

On the Multi Commodity Exchange (MCX), silver’s near-month contract went to Rs 60,819 per kg before closing at Rs 60,350. Gold went to an all-time high of Rs 23,358 per 10g. Monday, silver prices in the Mumbai spot market closed at Rs 59,670 per kg, higher by Rs 675 from Saturday’s close of Rs 58,995. Gold on the domestic markets closed at a new high of Rs 23,340 per 10g from Saturday’s close of Rs 23,125.

Gold hit an all-time high of $1,624.30 per ounce (oz) on the Chicago Mercantile Exchange, while silver reached $41.07 per oz.

“I am bullish on gold and silver and expect gold to touch Rs 24,200 per 10g on the higher side and Rs 23,000 per 10g on the lower side. Silver may go to Rs 63,000 per kg on the higher side or it may go to Rs 58,500 on the lower side,” said Prithviraj Kothari, president of the Bombay Bullion Association. Ajay Kedia of Kedia Commodities said, “I expect gold to test Rs 23,600 per 10g and silver to test Rs 64,500 per kg this week.”

Bullion rose after negotiations to lift the US debt ceiling hit a stalemate over the weekend, raising fear on a possible default and boosting the appeal of bullion versus US assets like treasuries and the dollar.

Democrats and Republicans in the US legislature are bitterly divided over plans to cut the US deficit, a necessary move before the debt ceiling can be raised.