Silver Prices Volatile as Investors Await Fed Signals and Global Economic Conditions

Silver prices are experiencing intense volatility as investors weigh the impact of global macroeconomic factors on its future trajectory. Experts predict that if conditions ease, silver could reach Rs.3.25 lakh per kg in the medium term.

N S Ramaswamy, Head of Commodity & CRM at Ventura, expects silver to remain volatile in the near term, with prices potentially moving within a wide range before the next sustained directional move. He notes that if macroeconomic conditions ease, downside support could hold around $64.50 per ounce (approximately Rs.2.35 lakh per kg on MCX). In the medium term, a softer inflation environment, Fed rate cuts, stabilising solar demand and a weaker US Dollar could push silver towards $75-$80 per ounce (Rs.3.25 lakh per kg on MCX).

However, if high interest rates persist, Ramaswamy expects silver to consolidate in the $60-$63 per ounce (Rs.2.25 lakh- Rs.2.89 lakh per kg on MCX) range. The near-term outlook remains volatile rather than pointing towards a smooth upward move.