Silver market witnesses surge in imports, 260 per cent increase in figures from February
Amit Gupta, a researcher at Kedia Advisory, commented on the phenomenon, stating, "As gold rallied, people are now moving towards silver, resulting in higher imports. Consumption in industrial use has also improved."
ANI
Apr 09, 2024 19:50 IST
New Delhi [India], April 9 (ANI): The silver market has witnessed an extraordinary surge in imports, with February figures showing a 260 per cent increase, marking a milestone in the metal's upward trajectory.
Analysts attribute this surge to a combination of factors, including heightened industrial consumption and mounting geopolitical uncertainties.
Amit Gupta, a researcher at Kedia Advisory, commented on the phenomenon, stating, "As gold rallied, people are now moving towards silver, resulting in higher imports. Consumption in industrial use has also improved."
This shift in focus towards silver comes amidst a backdrop of firmness in gold prices, driven by central bank buying and anticipation surrounding the US. Federal Reserve's policy meeting minutes and inflation data.
Today, silver prices tested the Rs 82,849 level on Multi Commodity Exchange (MCX), signaling a relentless upward momentum that could see the metal surpass the Rs 95,000 mark in the medium to long term, potentially even reaching Rs 1 lakh soon.
This rally has been propelled by a confluence of factors, including strong economic indicators, geopolitical tensions, and market-specific dynamics.
The resurgence in industrial demand, particularly from China, has played a pivotal role in bolstering silver prices.
As the Chinese economy shows signs of improvement, demand for silver in sectors such as electronics, solar energy, and healthcare has surged.
Moreover, India's record-high silver imports in February reflect a growing appetite for the metal, fueled by lower duties and substantial purchases from the United Arab Emirates.
Geopolitical uncertainties, including the Russia-Ukraine conflict and tensions in the Middle East, have heightened market volatility, driving investors towards assets like silver.
Furthermore, technical indicators suggest a strong momentum for silver, with positive Chinese service PMI data and a closely correlated movement with gold prices. (ANI)
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