Silver Price Today: Can MCX Silver Rally Beyond ₹1.06 Lakh?

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Silver Price Today: Can MCX Silver Rally Beyond ₹1.06 Lakh?

Silver prices on the Multi Commodity Exchange (MCX) have skyrocketed to a fresh high of ₹1,06,065 per kg, leaving investors and traders buzzing. The surge comes amid heightened geopolitical tensions and robust demand from the clean energy sector. But the big question on everyone’s mind: can silver extend its rally to ₹1.10–1.20 lakh this year?

Silver Price Today: Key Highlights

The MCX silver futures contract has hit an all-time high of ₹1,06,065, marking a sharp uptick from earlier 2024 levels. Just a few months ago, prices were hovering around ₹92,000—now, they’ve climbed like a rocket, fueled by multiple tailwinds.

What’s driving the rally?

• Geopolitical tensions: Escalating conflicts in the Middle East and Ukraine have investors flocking to safe-haven assets.
• Industrial demand: Solar panels, electric vehicles, and electronics are guzzling more silver than ever.
• Rupee weakness: A depreciating rupee against the dollar is amplifying domestic silver prices.

Why Is Silver Rallying?

Geopolitical Uncertainties

When the world feels shaky, investors turn to precious metals. Silver, often overshadowed by gold, has quietly become a go-to hedge. With wars raging and inflation lingering, traders are betting big on silver’s dual role—a store of value and an industrial necessity.

Could this demand hold? Much depends on whether global tensions ease or escalate further.

Industrial Demand

Silver isn’t just for jewelry—it’s the unsung hero of the green revolution. Solar panels, EV batteries, and 5G tech rely heavily on silver’s conductive properties. China and India, the world’s manufacturing powerhouses, are snapping up supplies, tightening the market.

Think of silver as the “electricity” of the clean energy transition—without it, the lights go out.

Weakness in the Rupee

A falling rupee makes dollar-priced commodities like silver more expensive domestically. With the Indian currency under pressure, MCX silver prices have outpaced global trends. If the rupee weakens further, ₹1.10 lakh could arrive sooner than expected.

Analyst Predictions: Can Silver Reach ₹1.10–1.20 Lakh?

Market experts are cautiously optimistic. Technical charts suggest ₹1,10,000 as the next resistance level, with a potential stretch to ₹1,20,000 if momentum holds. Fundamentals back this up:

• The Fed’s expected rate cuts could weaken the dollar, boosting silver.
• Industrial demand shows no signs of slowing.

But beware—economic slowdowns or a resurgent dollar could throw cold water on the rally.

Trading Strategy: Buy on Dips?

Analysts are advising a buy-on-dips approach. Key support levels to watch are ₹1,02,000–1,04,000. A dip near these zones could offer a golden entry point. Stop-loss? Keep it tight around ₹1,00,000. Targets? Aim for ₹1,12,000 initially.

Long-Term Outlook for Silver

Silver’s future shines bright, thanks to its role in renewable energy. Unlike gold, which mostly sits in vaults, silver is consumed—making supply constraints a real possibility. Historically, silver outperforms during inflationary periods. Could this be its decade?

Conclusion

Silver’s rally to ₹1.06 lakh is no fluke—it’s backed by geopolitics, industrial hunger, and a shaky rupee. While ₹1.10–1.20 lakh seems plausible, traders should stay alert to global cues. The metal’s fate hinges on whether demand outpaces supply in the long run.

What’s your take—will silver keep soaring, or is a correction around the corner?

Source: Livemint – Markets

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