Silver Surges Above $91 Per Ounce as Market Eyes $100 Target Amid Supply Constraints
Silver prices have surged above $91 per ounce on COMEX, driven by supply-demand imbalances and rising industrial consumption from energy transition technologies. Market analysts cite favorable macroeconomic conditions and geopolitical risks supporting the rally, though reaching $100 would require extraordinary catalysts. Experts advise caution due to potential volatility and profit-taking risks despite the bullish momentum.
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Silver prices have surged above $91 per ounce on COMEX, intensifying market speculation about whether the white metal could breach the psychological $100 per ounce threshold before January concludes. The rally has gained significant momentum in recent sessions, drawing close attention from market participants as multiple factors converge to fuel bullish sentiment.
Supply-Demand Fundamentals Drive Price Action
The current price surge stems from a fundamental imbalance between supply and demand dynamics. According to Jigar Trivedi of Reliance Securities, the momentum reflects tightening physical markets where mine output has struggled to keep pace with rising industrial consumption.
| Market Factor: | Impact |
|---|---|
| Mine Output: | Struggling to meet demand |
| Industrial Consumption: | Rising significantly |
| Energy Transition Use: | Increasing adoption |
| Electronics Demand: | Growing requirements |
The increased utilization of silver in energy transition technologies, electronics, and electrification sectors has reinforced the metal's critical role beyond its traditional precious asset status. These applications face limited viable substitutes, creating sustained industrial demand pressure.
Macroeconomic Conditions Support Rally
Favorable macroeconomic conditions are providing additional support for the precious metal's ascent. Expectations of lower real interest rates and a softer US dollar are reducing the opportunity cost of holding precious metals. Simultaneously, heightened geopolitical risks have enhanced silver's appeal as a safe-haven investment.
Renisha Chainani, Head of Research at Augmont, acknowledges these factors provide solid support for silver prices. However, she notes that breaching $100 within the month would still require an extraordinary catalyst to materialize.
Technical Levels and Price Targets
From a technical perspective, analysts are monitoring key resistance levels that could determine silver's path toward $100. Chainani identifies a sustained breakout above the $92.00 to $93.00 zone as an important technical step before the $100 target comes into realistic view.
| Price Level: | Significance |
|---|---|
| Current Price: | Above $91 per ounce |
| Key Resistance: | $92-$93 zone |
| Psychological Target: | $100 per ounce |
| MCX March Contracts: | Potential ₹3,00,000 per kg |
Trivedi notes that MCX Silver March contracts could potentially appreciate to ₹3,00,000 per kg during the month, reflecting the bullish outlook in domestic markets.
Cautionary Perspectives and Risk Factors
Despite the upward momentum, market experts are advising caution regarding the sustainability of the rally. Trivedi emphasizes that the path to $100 is unlikely to be linear, with several constraints potentially impacting price progression:
- Elevated volatility expectations
- Potential supply-side responses to higher prices
- Possible policy surprises affecting market dynamics
- Long-term sustainability dependent on structural deficit persistence
Author and investor Robert Kiyosaki has voiced a more guarded perspective, warning on social media platform X that "silver is peaking" and suggesting a pullback may be imminent. While reaffirming his bullish stance and stating he would buy silver up to $100, Kiyosaki cautioned that widespread profit-taking by retail speculators could trigger a sharp correction. The longtime silver investor, who has been invested in the metal since the 1960s, emphasized patience and urged investors to remain wary of market overexuberance.
Market Outlook
As silver trades near its highest levels in over a decade, the market stands at a pivotal juncture. The potential for reaching the $100 mark in the coming weeks will depend on a delicate interplay of industrial demand sustainability, supply constraint persistence, macroeconomic developments, and investor behavior patterns. The convergence of structural supply-demand imbalances with favorable macroeconomic conditions has created a compelling backdrop for continued price appreciation, though volatility and correction risks remain present.
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