Silver touches Rs 1 lakh mark on MCX march contract
Oct 21, 2024
New Delhi [India], October 21 : Silver prices have reached a significant milestone on Monday, touching Rs 1,00,000 on the Multi Commodity Exchange (MCX) for the March contract.
According to the experts, this surge is being driven by escalating geopolitical tensions in the Middle East, actions by China, and uncertainties related to the upcoming U.S. elections. These global risks are pushing silver prices to fresh all-time highs, as investors seek safe-haven assets amidst the growing instability.
"Silver prices have aligned with expectations, and we anticipate a potential rally towards the usd 40 mark in the next six months. MCX March contract silver tested Rs 1 lakh, as geopolitical tensions are expected to continue supporting its safe-haven appeal. Additionally, high ETF investments and China's economic support contribute to a positive outlook. With GOLD SILVER RATIO dropping towards the 80 level, it is likely to outperform gold. We expect silver to reach Rs 1.3 lakh by March 2025" said Ajay Kedia, Director of Kedia Advisory.
Silver remains strong in the market, with industrial demand expected to further boost prices. Analysts predict that silver could soon approach the USD 40 mark, as demand continues to rise. The metal plays a key role in industries such as electronics, solar energy, and manufacturing, making it highly sought after for both investment and practical purposes.
In the commodity markets, contracts refer to agreements to buy or sell a specific quantity of a commodity at a predetermined price on a future date. These contracts are standardized and traded on exchanges like MCX. Traders use them to hedge against price fluctuations or to speculate on price movements.
For instance, in the case of silver, the March contract represents an agreement to trade silver at a fixed price in March, allowing traders to lock in prices now to avoid future volatility.
The ongoing geopolitical tensions and global risks are driving the prices of commodities like silver, as investors look for stability in uncertain times.
The surge in silver prices reflects both the increasing demand for industrial use and its value as a safe-haven asset. With the global outlook remaining uncertain, silver could see further gains in the coming months.
