The price of silver is witnessing a historic bull run, shattering records on both international and domestic exchanges. The ongoing geopolitical tensions between the United States and Venezuela are fuelling this remarkable rally, creating a perfect storm for the precious white metal.
Record-Breaking Rally on Global and Domestic Exchanges
On Wednesday, the COMEX silver price opened with a significant upside gap and swiftly climbed to a new lifetime high of $82.548 per ounce within minutes of the market opening. This surge extends a powerful upward trend that has captivated investors.
Mirroring the global momentum, the Multi Commodity Exchange (MCX) in India also saw silver reach a new zenith. On Tuesday, MCX silver rates hit an intraday high of ₹2,59,322 per kg. Although prices settled slightly lower at ₹2,58,000 per kg by the close, the record-breaking move underscores the intense buying interest.
Geopolitical Tensions Drive Supply Concerns
Market analysts point directly to the escalating US-Venezuela crisis as the primary catalyst behind the rally. The situation has sparked serious worries about potential disruptions in silver exports from key Latin American producers.
Experts warn that a significant portion of global silver supply could be constrained. Countries like Peru, Mexico, and Chad are major contributors, and any export impact from the region would create a demand-supply imbalance. This fundamental concern is strongly favouring the current bull trend, as investors anticipate a tighter market.
Expert Outlook: Can Silver Target $90?
The immediate future for silver prices appears heavily dependent on its ability to hold these newfound highs. Market watchers believe the bullish sentiment could persist if prices remain firm.
"If prices sustain above the resistance placed at $82 per ounce, the next level to watch for is $85 and $90 per ounce levels," said Anuj Gupta, Director at Ya Wealth, commenting on the outlook for silver rates.
The consensus among experts is clear: sustainability is key. If the COMEX silver price can maintain its footing above the crucial $82 per ounce mark, the path could be open for a test of much higher thresholds. The $90 per ounce level is now being discussed as a tangible target, contingent on the ongoing geopolitical climate and its effect on physical supply chains.
For Indian investors and traders, the trajectory of international prices will continue to directly influence domestic MCX silver rates. The current environment suggests a period of heightened volatility and closely watched price action for the precious metal.
