Ponmudi R, CEO of Enrich Money, said that MCX Silver is trading near Rs 2,58,836, sustaining its bullish channel, with every pullback attracting aggressive buying interest. “Holding above Rs 2,55,000 keeps the upside momentum firmly intact. Sustained strength above Rs 2,59,000 could drive a swift move towards Rs 2,64,000 to Rs 2,75,000, while the Rs 2,55,000 to Rs 2,52,000 band remains a key accumulation zone. Silver continues to outperform as a high-beta play within the broader precious metals uptrend,” he added.
The recent rally was driven by strong safe-haven demand following heightened global tensions after the US captured Venezuela’s president. Adding to uncertainty, the US President’s renewed push to assert control over Greenland has intensified frictions with the European Union. Investors are now awaiting US payroll data for further cues on the Federal Reserve’s interest rate outlook.
For those already holding silver, experts believe the outlook remains broadly positive, supported by global monetary easing, geopolitical uncertainty and structural demand. However, after the spectacular rally of 2025, prudence suggests a balanced approach, booking partial profits to lock in gains while maintaining core holdings as a hedge against volatility and inflation.
“With strong momentum, silver prices could test the $100 per ounce level in 2026,” says Hareesh V of Geojit Investments Ltd. “Technical breakouts, structural supply deficits and surging green-tech and industrial demand are key drivers. While consensus forecasts cluster in the $70 to $90 range, multiple bullish scenarios envision silver reaching, or even exceeding, $100 if macro conditions remain favourable,” he added.
However, silver continues to carry higher volatility, primarily due to its strong link to industrial demand across manufacturing, electronics and clean energy sectors. Ross Maxwell of VT Markets pointed out that this gives silver a more aggressive upside potential during strong economic growth or reflationary periods, but it also exposes it to sharper corrections during slowdowns when compared with gold.
InCred Equities suggests that silver is likely to remain bullish over the medium to long term despite intermittent volatility. Key drivers include sustained central bank purchases and ETF demand, which continue to absorb physical supply, as well as geopolitical risks and economic uncertainty that underpin its safe-haven appeal.In the case of silver, strong industrial demand and persistent supply deficits, particularly from technology and renewable energy sectors, add to the constructive outlook. That said, after an extended rally, consolidation and periodic pullbacks are natural, and short-term corrections may persist before fresh trends are established.
Also Read | Gold vs Silver ETFs: Where should investors deploy funds amid US–Venezuela conflict?
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
Source link
