SILVER PRICES UPDATE: 10-01-2025
Silver prices per kg gained 0.85% to settle at ₹91,711, fueled by safe-haven demand as markets assessed the Federal Reserve’s cautious stance on rate cuts and the economic implications of President-elect Donald Trump’s proposed policies. Comments from Fed Governor Christopher Waller, hinting at potential inflation easing in 2025, offered some optimism, but uncertainties around the pace of rate reductions remain.
Market Insights Driving Silver Prices
- Safe-Haven Demand: Silver’s appeal as a stable investment grows amid geopolitical tensions and policy uncertainties.
- Federal Reserve’s Stance: The Fed’s cautious approach to rate cuts provides support for silver, maintaining its role as a safe investment.
Strong Industrial Demand
- Renewable Energy: Silver’s crucial role in renewable energy technologies, including solar panels, is boosting demand.
Supply Constraints
- Perth Mint Sales: Silver sales from Perth Mint hit 1,057,311 ounces in December, a 55% year-on-year increase.
Global Market Deficit
- The Silver Institute projects global silver deficit to shrink by 4% to 182 million ounces in 2024.
- Industrial demand is expected to hit 1.21 billion ounces, thanks to growing demand from solar panels and electric vehicles, mitigating 16% drop in physical investment.
Production & Supply Outlook
- Increased mine output from Mexico, Chile, and U.S. will marginally ease silver supply constraints.
- Recycling of silver is expected to rise by 5%, which will support market stability.
Market Activity and Technical Levels
- Silver saw short covering as open interest dropped 10.72% to 22,797 contracts.
- Support for silver prices lies at ₹91,000, with potential downside testing ₹90,285.
- Resistance is positioned at ₹92,365, with a breakout above pushing prices to ₹93,015, keeping a bullish outlook.
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