Praveen Singh

The stunning silver rally continues unabated as the grey metal keeps on surging to fresh record highs on a confluence of bullish factors including ETF inflows

Buoyed by a dovish FOMC outcome, spot gold surged on December 11 extending its gains to the second day. At the time of writing this article, spot gold was trading with a gain of 1.3 per cent at $4282

The white metal, at the time of writing this article, was changing hands at $57.14, down 2.3 per cent for the day as investors book profit after a stunning 8-day rally

The yellow metal, at the time of writing this article, was trading at $4,213, up nearly 0.2 per cent for the day, even as the US yields firmed up

Gold will react mainly to the shifting odds of a December rate cut, which means that the September NFP report may further weigh on the yellow metal, analyst said

Silver price outlook: The grey metal is expected to be highly volatile as risk assets fall, said Mirae Asset analyst. Dip buying is preferred over chasing the rally, he said

Downside is expected to be limited on concerns about the US job market and expectations of Fed rate cut in December

Silver holding well despite elevated yields and a firmer US Dollar is a positive sign. However, easing the silver lease rate has taken out the bullish sting to some extent

Central banks continuing to buy gold at a brisk pace despite elevated gold prices underscores the importance of holding metal in the present, uncertain political, economic, and geopolitical times

In the short-term, however, further heightened volatility can not be ruled out, especially due to geopolitical factors and US CPI data

Sharp two-day decline in gold prices has made gold healthier as momentum-driven froth has largely subsided. Long-term fundamentals are intact and call for much higher prices

As gold is in an unchartered territory, it is difficult to forecast prices; however, a breach of $4,300 level will open a way to $4,500 (MCX December contract ₹1,36,000) a - a psychological resistance

London market tightness is expected to ease as silver starts flowing from New York. However, demand remains quite strong as reflected by huge ETF inflows

Huge surge in silver ETF inflows is the major driver of this stunning ongoing silver rally as Fed rate cut expectations boost investors' sentiments

Gold may correct lower on a firmer Dollar as Fed largely remains cautious on rate cuts going forward. However, downside is expected to be limited

Spot silver closed with a loss of over 2 per cent at $41.67 MOz on September 17 as the US Dollar Index and bond yields spiked higher on the Fed Chair Powell's comments in his post FOMC presser

Spot gold hit a new record high of $3,707 on September 17 as the US Federal Reserve cut the Fed Fund overnight rate by 25 bps to 4-4.25 per cent range and signalled two more rate cuts by the end of th

Praveen Singh, head of currencies and commodities at Mirae Asset Sharekhan, sees a weakening US labour market as a potential source of concern for the metal

Gold outlook: The yellow metal is likely to rise to $3800 (Rs 115,000) in the coming months, with support at $3600, according to Praveen Singh

Silver outlook continues to remain constructive on rate cut expectations, huge ETF inflows, elevated geopolitical and economic risks. Strength in gold bodes well for silver.