Analysts believe that this corrective move is temporary and silver remains on track to test higher levels, supported by global cues, industrial demand and a weak rupee. They view this move as a correction and not a reversal as the Rs 2,03,000 target still seems in play.Ponmudi R., CEO of Enrich Money, noted that “Silver continues to outperform gold in both global and domestic markets,” adding that the rally was supported by a “strong trend acceleration, driven by industrial demand and broader dollar softness.”
He further highlighted the importance of the breakout, “Continuing this breakout, the targets of Rs 2,00,000 – Rs 2,03,000 remain active. The support is at Rs 1,90,000, with deeper support at Rs 1,86,000, although the larger trend remains clearly upward.”
Rahul Kalantri, VP Commodities at Mehta Equities agreed with the positive sentiment, stating that “silver has hit another all-time high and is heading towards $65/oz,” while also noting that strong global fundamentals and a weaker rupee “will keep domestic bullion prices elevated.”
On the technical front, Manoj Kumar Jain of Prithvi Finmart Commodity Research also said that silver is expected to trade between Rs 1,96,600 and Rs 2,04,000 in the near term, suggesting that the Rs 2 lakh level remains a key pivot point. The company recommended waiting for “some corrective dips before initiating new long positions in gold and silver and also suggested strictly avoiding short selling in both precious metals.”
Also read: Gold prices hit 7-week high, silver posts gains near Rs 2 lakh. Is this a buying opportunity?
While silver may have stalled just below the Rs 2 lakh mark for now, market observers believe the correction could set the stage for the next leg of the rally, especially if support levels persist and fresh buying emerges.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times)
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