 "silver")
Brokerage Motilal Oswal expects silver to hit Rs 85,000 in the next 12 months and has recommended a buy-on-dips strategy to investors.
Notwithstanding the recent correction in silver, investors should continue to accumulate this precious metal at lower levels, it suggested.
After experiencing significant gains in the first four months of 2023, silver encountered some volatility at higher price levels. After every major dip, domestic silver prices have been seeing a range shift on the higher side and Motilal expects this trend to continue.
"MOFSL expects that the momentum in Silver is likely to continue, and could add another 15% over the next few quarters. MOFSL advises continuous accumulation at lower levels with immediate support at Rs 70,500, while strong medium-term support is at Rs 68,000. On the higher side MOFSL could see prices targeting Rs 82,000 followed by Rs 85,000 over the next 12 months," it said in a release.
 "silvergold")
5 reasons why silver prices will rise, according to Motilal Oswal
1. In early 2023, silver had a strong performance, gaining approximately 11% in the first four months, maintaining a 6% overall gain. The initial rally was driven by concerns in the US banking and debt sectors, but this momentum was somewhat tempered by the Federal Reserve's "Hawkish Pause" policy, impacting both precious and industrial metals.
1. In early 2023, silver had a strong performance, gaining approximately 11% in the first four months, maintaining a 6% overall gain. The initial rally was driven by concerns in the US banking and debt sectors, but this momentum was somewhat tempered by the Federal Reserve's "Hawkish Pause" policy, impacting both precious and industrial metals.
2. With the US Consumer Price Index (CPI) at 3.2%, down from its peak of 9.1% in July 2022, central banks are revaluating their policies, potentially leading to a shift in the Fed's stance from tightening to easing, which could benefit metals like silver, noted the brokerage.
3. "Geopolitical tensions are contributing to a risk premium, supporting silver prices. Additionally, the Dollar Index rebounded sharply from around 99.60 to 104. The Fed's raised growth forecast for the US in 2023, signalling a soft landing, is favourable for industrial metals and silver alike," said Navneet Damani: Head Research - Commodities and FX at Motilal Oswal.
4. Data from the Silver Institute suggests that the market balance could remain in deficit for the third consecutive year, further supporting silver prices. Positive signals from China regarding economic growth and industrial demand are potential catalysts for silver's performance, added the report.
5. Lastly, the demand for silver in green technologies such as solar energy, electric vehicles (EVs), and 5G technology continues to paint a promising outlook for the silver market.
Festive season demand
Festive season demand
"As we approach the festive season, demand on the domestic front could also positively impact prices. Recession fears have subsided, however, any rise in uncertainty regarding growth could increase the safe-haven bet for Gold- which could be supportive for silver as well.. Silver is blessed with the dual advantage of being influenced by the fundamentals of Industrial and precious metals supporting it at timely intervals. We continue to maintain our stance of Buy on dips," said Manav Modi, bullion analyst.
