MCX silver price jumps over 6 pct in intraday trade to 7-year high; price uptick to continue, expert says

While gold glitters at a historic high today, silver is also shining bright. The MCX September Silver Futures were up by over 6 per cent around 7:40 pm, attaining a 7-year high. This precious metal was trading around Rs 57,343 around this time, up by over Rs 3330. It attained an intraday high of Rs 57,347 today.

Senior Technical Analyst Anuj Gupta said that he was bullish on this metal and it will only gain from here. Gupta who is a Deputy Vice President, Commodity and Currency Research at Angel Broking said that silver is moving ahead in tandem with gold.

He expects the Silver futures to trade between Rs 60,000 and Rs 61,000 by the end of this week’s trading session on Friday.

As the prices of the yellow metal continue to rise, this will be a preferred investment instrument. What is aiding the cause of silver is a favourable monsoon and Gupta expects good traction in rural parts of India. Traditionally, people in rural parts like to spend some part of their disposable incomes on jewellery. The festival season will bring fresh demand for silver in the physical market, he said.

As for international prices, the CME July 2020 Silver futures were trading at USD 21.420 per ounce on Tuesday up by USD 1.296 at 9:14 CT (7:44 IST). The silver futures are likely to trade between USD 19 and USD 20 by the end of Friday session, Gupta said.

The Silver Futures are likely to test USD 22 – USD 23, by this week, Gupta said.

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Meanwhile, the silver metal will also gain from the uncertainties in the overall global economic scenario amid the growing threat of coronavirus pandemic. As cases continue to rise in the US and economies push for further stimulus, bullion will further strengthen its position.