Silver has gained nearly 9% over the past week, outpacing gold’s movement.
The metal broke out of its earlier range and now trades above $36.5 per ounce globally — a level last seen in over a decade.
Augmont Goldtech noted in its weekly update that silver has successfully broken past the $35 per ounce resistance level, with the next technical target set at $38 per ounce (around ₹1.11 lakh per kg), if momentum holds.
Why silver is rallying?
The rally is fuelled by a combination of global and domestic factors:
Safe-haven demand: A dovish outlook from the US Federal Reserve and weak economic data have boosted investor interest in precious metals.
Weaker dollar: A declining US dollar has made commodities like silver more attractive to buyers holding other currencies.
US-China trade dynamics: Renewed tensions followed by partial diplomatic thaw have kept silver attractive both as a hedge and as an industrial input.
Industrial use rebound: As a key component in solar panels, EVs, and electronics, demand for silver as an industrial metal is on the rise.
Even though easing geopolitical tensions slightly dented silver’s safe-haven appeal last week, its industrial value kept the rally going.
According to Augmont’s blog, silver and platinum have drawn attention due to their historically large discount to gold and looming supply constraints.
What’s next?
Analysts at Augmont expect silver to test $38 per ounce levels (~₹1.11 lakh/kg) if the current momentum continues. However, upcoming US inflation data and the Federal Reserve’s June 17–18 meeting could influence market direction. A hotter-than-expected CPI reading might delay interest rate cuts, strengthen the dollar, and cap gains in precious metals.
First Published: Jun 9, 2025 4:09 PM IST
