Silver price likely to touch ₹85,000 in the next 12 months, apply ‘buy on dips’, says Motilal Oswal
- Silver prices have a dual advantage of being influenced by fundamentals of industrial and precious metals supporting it at timely intervals.
Silver prices have seen a decent rally in 2023 led by strong fundamentals amid increased industrial demand. After 11% gains in the first four months of 2023, silver prices witnessed some turbulence at higher levels.
The white metal has a dual advantage of being influenced by fundamentals of industrial and precious metals supporting it at timely intervals.
After every major dip, domestic silver prices have been seeing a range shift on the higher side. Domestic brokerage firm Motilal Oswal Financial Services expects this trend and the momentum in silver to continue, which could add another 15% over the next few quarters.
Motilal Oswal expects silver prices to touch ₹85,000 in next 12 months. It continues to maintain its stance of ‘buy on dips.’
“After every major dip domestic silver prices have been seeing a range shift on the higher side and we expect this trend to continue. We advise continuous accumulation at lower levels with immediate supports at ₹70,500, while strong medium term support is at ₹68,000. On the higher side we could see prices targeting ₹82,000 followed by ₹85,000 over the next 12 months,” Motilal Oswal said in a report.
Demand from the industrial side is expected to rise significantly, hence apart from advancement in green technology, global growth related data points could also play an important role in the medium term.
On the domestic side, the upcoming domestic festive season could also support silver prices.
“Moreover, while concerns about a recession have diminished, any resurgence of uncertainty regarding economic growth could boost silver's appeal as a safe-haven asset, in tandem with gold, the report said.
Data from the silver institute suggests market balance could remain in deficit for a third successive year. Positive indication from China towards economic growth or industrial demand could be supportive for silver prices.
Additionally, demand from green tech, i.e., Solar energy, EVs, 5G tech continue to paint a positive picture for silver.
At 1:50 pm, silver prices were trading 0.13% higher at ₹71,861 per kg on MCX.
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