The price of silver extended its upward momentum in trading on Tuesday, registering significant gains in both international and domestic markets. This rally is primarily attributed to escalating geopolitical tensions following recent US attacks on Venezuela, which have spurred demand for the precious metal as a safe-haven asset.
Silver Price Rally: Key Levels and Drivers
In the international market, COMEX silver was trading up by over one per cent during the early morning session. The white metal is currently quoting close to a major resistance level set at $78 per ounce. Market analysts have identified this geopolitical friction as the major catalyst for the current uptrend in silver rates.
On the domestic front, the silver rate today in Delhi had finished at ₹2,45,510 per kg on Monday. Trading on the Multi Commodity Exchange (MCX) shows the price facing a crucial hurdle at the ₹2,50,000 per kg mark.
Expert Outlook and Price Targets
Commenting on the silver price outlook, Anuj Gupta, Director at Ya Wealth, provided a detailed analysis. He noted that the COMEX silver rate is currently moving within a broader range of $72 to $78 per ounce. Similarly, on the MCX, the metal is oscillating in a band between ₹2,42,000 to ₹2,50,000 per kg.
Gupta emphasized that a decisive break above the immediate resistance could trigger further rallies. If COMEX silver sustains above $78 per ounce, the next targets are seen at $82 and $85 respectively. For Indian investors, a break above the ₹2,50,000 per kg level on MCX could open doors for the price to reach ₹2,55,000 per kg in the near term.
Safe-Haven Demand Fuels Momentum
The expert from Ya Wealth maintained that the white metal is expected to continue its upward trajectory. The primary reason is the rising demand for silver as a safe-haven investment amid the ongoing and escalating conflict between the United States and Venezuela. This flight to safety among investors is providing strong underlying support for prices, overshadowing other market variables and creating a bullish environment for precious metals.
