Bengaluru Silver Market Recovers After Two-Day Slump
The silver market in Bengaluru has shown signs of recovery after a two-day slump. On August 31, the price of silver per gram in the city reached ₹263, which is three rupees above Delhi's benchmark.
This development comes as a relief for technology companies and jewellery fabricators who buy silver to solder circuit boards and stock silver bars respectively. The recovery is attributed to the market's response to Federal Reserve chair's remarks at the Jackson Hole symposium in Wyoming, which dialled back rate cut expectations and strengthened the dollar.
The MCX silver September contract, which serves as a pricing benchmark for physical silver in Indian cities, fell from ₹2,63,000 per kilogram on August 22 to ₹2,45,000 on August 28. Bengaluru's physical rate tracked this move, touching ₹2,41,000 per kilogram on August 29.
The industrial demand for silver has been a major driver of its price recovery. According to the Silver Institute, the global supply deficit is projected at 215 million troy ounces, with industrial applications such as AI data centre power infrastructure, solar panel manufacturing, and EV battery systems driving demand.