The precious metal silver has increased by more than 30% in the last several months, and stockbroker Motilal Oswal anticipates further advances in the metal. The brokerage raised its price prediction for domestic silver from ₹1 lakh to ₹1,25,000 in a note published on Friday.
Additionally, Motilal Oswal stated that profit booking is probably going to occur at specific periods because of the recent increases. It does advise taking advantage of any significant decline in Silver prices as a chance to purchase. There are significant support levels between ₹86,000 and ₹85,000. Motilal Oswal believes that $40 is the price target for Comex Silver.
The company also indicated at potential US Federal Reserve rate cuts, which are becoming more likely in light of the most recent economic data. According to the CME FedWatch tool, there is almost a 70% chance that the Federal Reserve will lower interest rates in September.
According to Motilal’s report, as China is one of the biggest producers and consumers of industrial metals, any significant movement in these metals also affects silver prices. Market players are also expecting the PBOC to push for more liquidity.
“Chinese inflation is near 0% so, the central bank has a lot of room to cut rates. The Chinese equity market has reversed significantly – crude, copper and gold imports are also quite high giving some confidence in the freshly brewing China story,” the note from Motilal Oswal said.
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According to Manav Modi, Senior Analyst of Commodity Research at Motilal Oswal Financial Services, the overall supply in 2024 is predicted to be close to 1,004 tonnes, the same amount as in 2021. In addition, he projects a 1% drop in mine production to 823.5 tonnes from the previous year.
“The decrease is attributed to challenges in mining operations leading to increased supply constraints,” Modi said.
Even though there haven’t been many ETF flows for silver, speculative purchasing has kept prices from falling too much.
| Silver Prices Returns | In % |
| 2018 | -1 |
| 2019 | 20 |
| 2020 | 46 |
| 2021 | -8 |
| 2022 | 11 |
| 2023 | 7 |
| 2024 (YTD) | 30 |
The 30% increase in silver prices thus far is the precious metal’s greatest calendar year return since 2020.