The crude oil/silver ratio has fallen through the crucial support around 58, which means silver remains vulnerable to rise in oil prices.
Silver and Gold prices dipped in the last two sessions, with yellow metal dipping 2 per cent and silver down 1 per cent intraday on Friday.
India has permitted imports of around 6,500 metric tons of silver over six months despite weak domestic demand, a move expected to ease local premiums while supporting global prices.
Praveen Singh of Mirae Asset Sharekhan said that silver has fallen quite sharply in the last few weeks. The white metal looks weaker than gold, as ETF flows are not inspiring.
In near-term, silver is likely to range trade between $58 and $61. Interim resistance is at $60. Major hurdle is at $64.50.
Mirae Asset Sharekhan said that traders may buy the metal with a strict stop-loss below $62 for short-term trading. Resistance is seen at $65, followed by the $66.05-$66.40 zone.
Silver may rise further to test resistance around $68 as yields, after relentless rise in last few days, can correct further. Interim resistance is seen at $66.55. Support is at $64.50-$62.80
Mirae Asset Sharekhan said dovish Fed commentary has eased downside pressure on silver, but high China inventories, subdued LBMA lease rates and weak ETF flows remain concerns.
Silver price outlook: Praveen Singh of Mirae Asset ShareKhan said that spot silver is expected to consolidate its gains after rising a whopping 12 per cent last week.
Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, said oil prices fuelled inflation concerns and increased expectations of higher interest rates.
India imposed licensing requirements for silver imports in May to preserve foreign-exchange reserves, sending shipments plunging to an estimated 29 tonnes in June from 747 tonnes in January
Silver is expected to be highly volatile and choppy in the short run due to the evolving situation in West Asia. However, as West Asia conflict is likely to remain contained, traders may buy the dips.
Silver prices rallied by Rs 6,066 to Rs 2.52 lakh per kilogram in futures trade on Monday as easing geopolitical tensions in West Asia and a weaker US dollar improved sentiment in the bullion market. On the Multi Commodity Exchange, the white metal for July delivery surged Rs 6,066, or 2.46 per cent, to Rs 2,52,252 per kilogram in a business turnover of 11,420 lots. In the past week, silver fell Rs 2,351, or nearly 1 per cent, to Rs 2.46 lakh per kg. The rebound comes after US and Iranian officials announced that they had reached an initial agreement to end the conflict, lift the US naval blockade on Iran and reopen the Strait of Hormuz, a key route for global energy supplies. In a post on Truth Social, US President Donald Trump said, "The deal with the Islamic Republic of Iran is now complete," adding that he had authorised the reopening of the Strait of Hormuz and the immediate removal of the US naval blockade. In the international markets, Comex silver futures for July contract
According to Praveen Singh, head of commodities at Mirae Asset Sharekhan, silver is expected to continue to remain under pressure unless a US-Iran deal is formally announced
In the present scenario, upside in silver is expected to remain capped barring clear and material developments aiding constructive US-Iran negotiations
Silver recovery is being driven by ceasefire optimism that is keeping the oil prices capped. Safe-haven flows seem to be largely absent
The report highlights a clear divergence in behavior between Indian retail investors and global institutional players, identifying four distinct phases in the silver ETF net flow.
Silver prices on Monday rose nearly 5 per cent to Rs 2,65,282 per kg in the futures market as renewed global tariff tensions boosted demand for safe-haven assets. On the Multi Commodity Exchange (MCX), silver futures for March delivery zoomed Rs 12,338, or 4.88 per cent, to Rs 2,65,282 per kg in 6,024 lots. In the international market, comex silver futures for March contract rose 5.58 per cent, or USD 4.5, to USD 86.93 per ounce. Silver climbed to trade above 5 per cent, extending gains to a fourth session as renewed tariff tensions boosted demand for safe-haven assets, Jigar Trivedi, Senior Research Analyst at Indusind Securities, said. Meanwhile, US President Donald Trump raised a global levy from 10 per cent to 15 per cent following the US Supreme Court's rejection of his "reciprocal" tariffs. Amid this, India delayed talks aimed at finalising an interim deal with Washington. "Investors also grappled with growing fears that the Trump administration could initiate military acti
Despite the sharp run, analysts expect silver prices to continue their upward march amid intermittent corrections, which they feel will be bought into by investors.
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