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New Indian Express
11 hours ago
- Business
- New Indian Express
Silver hits new all-time high of Rs 1.08 lakh per kg on strong demand
MUMBAI: Continuing its upward momentum, silver prices surged by Rs 1,000 to reach a fresh all-time high of Rs 1,08, 100 per kilogram in the national capital on Monday, according to the All India Sarafa Association. This follows a steady performance on Saturday, when the white metal traded flat at Rs 1,07,100 per kg (inclusive of all taxes), after soaring by Rs 3,000 to hit a previous record high of Rs 1,07,100 per kg on Friday. In the international market, spot silver rose by 0.9% to USD 36.30 per ounce. On the MCX, silver prices were trading above 106,500 level on Monday. The recent surge in silver prices is driven by strong industrial demand, particularly from the EV and solar sectors. Further, heightened geopolitical tensions and a weakening dollar have bolstered its appeal as a hedge. Commodity experts suggest that the metal could scale new peaks in the near future. Tejas Shigreka, Chief Technical Research Analyst Commodities and Currencies at Angel One said that the outlook for silver in the coming weeks appears robust, underpinned by safe-haven demand amid persistent geopolitical and economic uncertainties. 'Ongoing geopolitical tensions—such as the Russia-Ukraine conflict and regional instabilities—alongside macroeconomic challenges, including inflationary pressures, recession risks, and fiscal imbalances in major economies like the United States, are compelling investors to seek refuge in precious metals to safeguard their wealth,' said Shigreka.
Mint
02-05-2025
- Business
- Mint
Gold prices crack ₹7,000 from peak: Is it time to shift focus towards silver?
Gold price today: After a stellar rally to above the ₹ 1 lakh mark, gold prices have moderated lately, crashing ₹ 7,000 per 10 grams from their peak, to trade at ₹ 93,000 levels on the MCX. Ease in trade tensions and profit taking at higher levels are the factors behind the crash in gold prices. For this week, MCX gold prices have declined 2.04% to ₹ 93,300 level while on the Comex, spot gold has lost 1.8% to trade at $3,255.60 an ounce. The easing of global trade tensions reduced demand for safe-haven assets, prompting investors to cash in gains. US President Donald Trump's indications of potential trade agreements with South Korea, Japan, and India, along with optimistic comments regarding a deal with China, sparked a shift in market sentiments, said Tejas Anil Shigrekar, Chief Technical Research Analyst, Commodities and Currencies at Angel One. According to US Treasury Secretary Scott Bessent, several major trading partners have made 'very good' offers to avoid US tariffs, with India expected to be among the first to finalise a deal. US Federal Reserve policymakers have signalled that short-term interest rates will remain unchanged as they wait for clearer signs that inflation is nearing the US central bank's 2% goal or until there is a whiff of a deteriorating job market, according to a Reuters report. Elevated interest rates diminish the appeal of non-interest-yielding assets like gold. Against this backdrop, analysts largely believe the best of the gold rally is already over and the yellow metal is set to face more corrections. Kunal Shah - Head of Commodities Research - Nirmal Bang, explained that the jump in gold prices from ₹ 90,000 to ₹ 99,000 in a matter of three days was a euphoric rally, which generally happens when any asset class is in a bubble phase. "No central banks bought gold during that period. India's and China's jewellery demand remained sluggish. It was just the fear factor — that the 145% tariff on China would lead to a sharp slowdown in the world's top two economies. There were recessionary concerns globally, and all those fears led to that parabolic move," Shah highlighted. He said this kind of move takes place once in a decade, and we have likely already seen the peak, as far as the highs are concerned. "I believe that $3,500 seems to be the top for gold. I'm not expecting that level to be revisited soon. So with every upside in gold futures, due to any positive news or negative economic data, the rally is likely to remain very short-lived," Shah added. He believes that profit taking in gold will continue as all the positive factors that could drive gold higher are already discounted in the price. He expects gold to touch $3,000 or $2,950 in the next three to four months on Comex and ₹ ₹ 89,000 to ₹ 88,000 on the MCX. Echoing similar views, Shigrekar of Angel One said gold prices are likely to decline further as easing trade tensions reduce the metal's safe-haven appeal. "Traders with a more aggressive strategy could look to buy during the consolidation phase in the demand zone at ₹ 91,600– ₹ 91,200, with major support at ₹ 90,300. A significant reversal in the near-term trend may follow," opined Shigrekar. He has a target price of ₹ 95,100 – 95600. As weakness in gold is expected to persist, and with the gold-silver ratio staying elevated, analysts are turning bullish on the white metal. Shah explained that when gold prices decline, silver typically follows suit—though not always to the same degree—since a downturn in gold often weighs on silver. He noted that silver prices are currently subdued due to high tariffs on solar panels, which have reduced exports from China to the US. These exports account for approximately 18% of global solar panel trade. Given that the solar sector has been a key driver of silver demand, especially with its double-digit growth in recent years, the tariff impact has temporarily softened silver prices. He, however, believes that this trend is likely to be short-lived. Any constructive deal between the US and China — even just sitting down for negotiations — could lead to an upside in silver, Shah said. Additionally, the elevated gold-to-silver ratio also signals a potential mean-reversion opportunity in silver, according to Rishabh Nahar, Partner and Fund Manager at Qode Advisors PMS. "Historically, when the ratio crosses 80, silver tends to outperform gold in subsequent periods. With the ratio hovering near multi-decade highs, silver appears undervalued relative to gold. This divergence isn't just technical it reflects how silver has lagged in pricing in the same macro risks that are driving gold: geopolitical uncertainty, central bank accumulation, and currency debasement trends. For investors, this makes silver an attractive, asymmetric bet within the precious metals basket," added Nahar. Shah believes that ₹ 90,000 to ₹ 92,000 is a great level to re-enter long positions in silver on the MCX. And for COMEX, $31 to $30.50 is a great level to re-enter, he said, as he expects silver could go up to $35–$38 on COMEX in the next six months. In India, silver prices can hit ₹ 1,05,000 to ₹ 1,10,000 per kg, according to his estimates. "Any downside we see because of gold's fall should be used as a buying opportunity. Our outlook on silver is quite constructive compared to gold," Shah added. This week, silver prices on MCX have moderated by 3.5% to ₹ 94,000 per kg levels and Comex silver prices by 1.9% to $32.4.
Mint
02-05-2025
- Business
- Mint
Gold prices crack ₹7,000 from peak: Is it time to shift focus towards silver?
Gold price today: After a stellar rally to above the ₹ 1 lakh mark, gold prices have moderated lately, crashing ₹ 7,000 per 10 grams from their peak, to trade at ₹ 93,000 levels on the MCX. Ease in trade tensions and profit taking at higher levels are the factors behind the crash in gold prices. For this week, MCX gold prices have declined 2.04% to ₹ 93,300 level while on the Comex, spot gold has lost 1.8% to trade at $3,255.60 an ounce. The easing of global trade tensions reduced demand for safe-haven assets, prompting investors to cash in gains. US President Donald Trump's indications of potential trade agreements with South Korea, Japan, and India, along with optimistic comments regarding a deal with China, sparked a shift in market sentiments, said Tejas Anil Shigrekar, Chief Technical Research Analyst, Commodities and Currencies at Angel One. According to US Treasury Secretary Scott Bessent, several major trading partners have made 'very good' offers to avoid US tariffs, with India expected to be among the first to finalise a deal. US Federal Reserve policymakers have signalled that short-term interest rates will remain unchanged as they wait for clearer signs that inflation is nearing the US central bank's 2% goal or until there is a whiff of a deteriorating job market, according to a Reuters report. Elevated interest rates diminish the appeal of non-interest-yielding assets like gold. Against this backdrop, analysts largely believe the best of the gold rally is already over and the yellow metal is set to face more corrections. Kunal Shah - Head of Commodities Research - Nirmal Bang, explained that the jump in gold prices from ₹ 90,000 to ₹ 99,000 in a matter of three days was a euphoric rally, which generally happens when any asset class is in a bubble phase. "No central banks bought gold during that period. India's and China's jewellery demand remained sluggish. It was just the fear factor — that the 145% tariff on China would lead to a sharp slowdown in the world's top two economies. There were recessionary concerns globally, and all those fears led to that parabolic move," Shah highlighted. He said this kind of move takes place once in a decade, and we have likely already seen the peak, as far as the highs are concerned. "I believe that $3,500 seems to be the top for gold. I'm not expecting that level to be revisited soon. So with every upside in gold futures, due to any positive news or negative economic data, the rally is likely to remain very short-lived," Shah added. He believes that profit taking in gold will continue as all the positive factors that could drive gold higher are already discounted in the price. He expects gold to touch $3,000 or $2,950 in the next three to four months on Comex and ₹ ₹ 89,000 to ₹ 88,000 on the MCX. Echoing similar views, Shigrekar of Angel One said gold prices are likely to decline further as easing trade tensions reduce the metal's safe-haven appeal. "Traders with a more aggressive strategy could look to buy during the consolidation phase in the demand zone at ₹ 91,600– ₹ 91,200, with major support at ₹ 90,300. A significant reversal in the near-term trend may follow," opined Shigrekar. He has a target price of ₹ 95,100 – 95600. As weakness in gold is expected to persist, and with the gold-silver ratio staying elevated, analysts are turning bullish on the white metal. Shah explained that when gold prices decline, silver typically follows suit—though not always to the same degree—since a downturn in gold often weighs on silver. He noted that silver prices are currently subdued due to high tariffs on solar panels, which have reduced exports from China to the US. These exports account for approximately 18% of global solar panel trade. Given that the solar sector has been a key driver of silver demand, especially with its double-digit growth in recent years, the tariff impact has temporarily softened silver prices. He, however, believes that this trend is likely to be short-lived. Any constructive deal between the US and China — even just sitting down for negotiations — could lead to an upside in silver, Shah said. Additionally, the elevated gold-to-silver ratio also signals a potential mean-reversion opportunity in silver, according to Rishabh Nahar, Partner and Fund Manager at Qode Advisors PMS. "Historically, when the ratio crosses 80, silver tends to outperform gold in subsequent periods. With the ratio hovering near multi-decade highs, silver appears undervalued relative to gold. This divergence isn't just technical it reflects how silver has lagged in pricing in the same macro risks that are driving gold: geopolitical uncertainty, central bank accumulation, and currency debasement trends. For investors, this makes silver an attractive, asymmetric bet within the precious metals basket," added Nahar. Shah believes that ₹ 90,000 to ₹ 92,000 is a great level to re-enter long positions in silver on the MCX. And for COMEX, $31 to $30.50 is a great level to re-enter, he said, as he expects silver could go up to $35–$38 on COMEX in the next six months. In India, silver prices can hit ₹ 1,05,000 to ₹ 1,10,000 per kg, according to his estimates. "Any downside we see because of gold's fall should be used as a buying opportunity. Our outlook on silver is quite constructive compared to gold," Shah added. This week, silver prices on MCX have moderated by 3.5% to ₹ 94,000 per kg levels and Comex silver prices by 1.9% to $32.4. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions. First Published: 2 May 2025, 04:13 PM IST
News18
30-04-2025
- Business
- News18
Gold Pulls Back From Highs, But Long-Term Outlook Remains Strong: Experts
Last Updated: Gold futures dropped 6.81% last week from record highs due to a stronger U.S. dollar and easing U.S.-China trade tensions. Despite this, gold is up 23% year-to-date. Gold Price Outlook: Gold futures witnessed a steep correction last week, retreating sharply from record highs amid global market shifts. According to Tejas Anil Shigrekar, Chief Technical Analyst for Commodities and Currencies at Angel One Ltd., the recent dip signals an opportunity for strategic selling, although the broader trend remains supported by long-term fundamentals. Gold June futures tumbled 6.81% in a single week from a record high of $3,509.9 per ounce (Rs 99,358 per 10 grams on MCX), weighed down by a strengthening U.S. dollar and signs of easing trade tensions between the U.S. and China, following exemptions on select American goods from Chinese tariffs. China is reportedly encouraging companies to propose commodities eligible for exemption from its steep 125% tariffs. Despite the pullback, gold futures remain up 23% year-to-date, fueled by persistent U.S.-China trade tensions and strong central bank demand, with the metal touching an all-time high of $3,500.05 per ounce. Despite the decline, gold is still up 23% year-to-date, bolstered by persistent geopolitical tensions and strong central bank buying. Prices touched an all-time high of $3,500.05 per ounce before correcting. 'The recent correction was triggered by a firmer dollar and a temporary improvement in U.S.-China trade sentiment. But from a broader perspective, gold remains a favored hedge amid global uncertainty," said Shigrekar. In tandem, silver prices also slipped, with the spot market recording a 1.77% decline to $32.90 per ounce. Yet, silver is still poised to post a third straight weekly gain. The gold-to-silver ratio widened, reflecting gold's resilience during economic uncertainty, while silver struggled due to its reliance on industrial demand. From a technical standpoint, Shigrekar advised a 'sell on rally" approach for both gold and silver. He noted that gold is facing immediate resistance between Rs 96,900–Rs 97,000 levels. 'If gold sustains above Rs 97,000, the next strong resistance is seen around Rs 98,100," he explained, while support lies in the Rs 91,700–Rs 91,200 range. For silver, resistance is seen between Rs 97,100–Rs 97,600, with a more formidable ceiling at Rs 99,700 if it holds above Rs 97,600. On the downside, key support is expected in the Rs 89,100–Rs 88,500 range. Gold Could Give Good Returns Over Next 5 Years Sandip Raichura, CEO of Retail Broking and Distribution and Director at PL Broking and Distribution, commented, 'Gold remains a shining investment as global uncertainty rises. With a potentially weaker dollar, India is well-positioned within global macroeconomic conditions. On this auspicious day, continuing to buy gold at current rates could lead to a fabulous run over the next five years." Aksha Kamboj, Vice President of the Indian Bullion and Jewellers Association (IBJA) and Executive Chairperson of Aspect Global Ventures, added, 'Amid geopolitical tensions and currency fluctuations, gold continues to be a reliable asset. While short-term price corrections are possible, gold will remain a safe-haven asset. For consumers, gold offers both financial strength and emotional significance, making it a powerful way to celebrate prosperity and secure the future."
