Silver price surge: Silver prices in India reached the highest level on Thursday (June 5). Silver was being sold at ₹ 1,04,000 per kg in the spot market. The reason for this is that traders have started putting more bets in the market. Also, the ongoing uncertainty and strong technical signs in the world brought the price of silver up.
Tremendous movement in trading
There was a 17,560 lot trading in the market, which suggests that people are showing great interest in silver. Analysts say that investors have started new purchases, which further increased the price.
However, while silver is getting expensive in India, it fell slightly in foreign markets like New York. Silver was trading at $ 34.46 an ounce there.
Why is the demand for silver increasing?
A major reason for a strong rise in silver prices is the weakening economy of America and increasing tension in the world. As soon as economic conditions are weak, people find investments that are safe. Gold and silver are the oldest options of these.
Recent US figures show that the service sector has declined and private companies hired less people in May. It is expected that the US Central Bank (Federal Reserve) can cut interest rates, usually increase gold and silver prices.
What does technical attitude say?
Augmont Goldtech in gold-silver wholesale business had described the support level for silver ₹ 96,000 per kg and resistance ₹ 1,01,500. But now the price has crossed this level too, so if the international signals are positive then the price of silver can increase further.
Talking about the international market, silver was running within the radius of $ 32.5 to $ 34 from the last one month. But, now it has crossed this realm. The next major resistance level can be at $ 35 per ounce.
Gold is still calm than silver
Gold prices have not changed much because investors are waiting for the upcoming non–form job data in the US on Friday (June 6). If this data comes weak, the expectation of interest rate cuts will be stronger, which can lead to the price of gold.
What does the market mood say?
Vice President of India Bullion and Jewelers Association, Akshay Kamboj says, “People in the market are currently amidst hope and vigilance. Things like America-China trade tension, Europe’s tariffs and middle East are keeping the price of gold high. But if the data of jobs comes well in America, people can make profits.”
Also read: Gold Rate Today: Gold crosses 1 lakh rupees! Know the gold rate of Thursday 5 June