Diwali Silver Outlook: Current rally to take precious metal to Rs 70,000 – 72,000 levels, Rs 80,000 by year end: Research
Silver has outperformed gold in the recent run, however, it was trading nearly Rs 200 down on the Multi Commodity Exchange (MCX) on Wednesday
Silver has outperformed gold in the recent run, however, it was trading nearly Rs 200 down on the Multi Commodity Exchange (MCX) on Wednesday. Silver started Wednesday's trade on MCX slightly up at Rs 65035.00 per 1 kg against previous closing price of Rs 64989 a kg. At around 1.30, the precious metal was trading Rs 183.00 or 0.28% to Rs 64819.00.
Meanwhile, CapitalVia Global Research, a financial market research and consulting company, remained bullish on silver in the short-to-mid-term. It said the silver has been outperforming the Gold mainly because of demand coming from Industry.
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The research underlined that all base metals, including Copper, Aluminium, zinc, Nickle, Lead are trading near the Life- time high due to supply issues from the China and production are reducing. "The impact will affect the Silver price also," it observed.
The rally started from Rs 58,000 and it is expected to continue in Short to Midterm, it said.
Buy at current levels
The research suggested investor to buy partially at current levels and recommended to buy once some retracement come in the price.
"This rally is likely to end near the price of Rs 70,000 – 72,000. we may expect the price to shot up toward Rs 80,000 towards the year end," it said.
Suggesting to keep a watch on the US dollar, the research said the US Dollar Index fell below the 20-day moving average at 93.85, attempting to settle below 93.50. "If the US Dollar Index falls below 93.50, then next support would be at 93.10 – 92.80 which will be bullish for silver and gold prices for short term. If it starts to decline, silver will almost likely profit. It's intriguing because it looks to be all about shorting the financing currencies at this point; Silver will almost likely go in the other direction of the greenback, and the rise this week was, of course, a very favorable turn of events," it noted.
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