In a bullish outlook for precious metals, Kunal Shah from Nirmal Bang has projected a significant upside for silver prices, suggesting it may outperform gold in the coming months. The analyst's forecast paints a promising picture for investors eyeing the silver market.

Silver's Bright Prospects

Shah predicts that silver will continue its upward trajectory this year, driven by a combination of supply constraints and increasing demand. He recommends investors consider buying silver at the ₹1,23,000-1,24,000 per kilogram range, with an ambitious target of ₹1,35,000-1,40,000 by December.

Several factors contribute to this optimistic outlook:

• Supply shortages in the silver market
• Growing industrial and investment demand
• Countries adding silver to their reserves
• The United States placing silver on its critical minerals list

Gold's Glittering Future

While silver takes the spotlight, gold is not far behind in Shah's projections. The analyst has revised his forecast upwards for the yellow metal:

The bullish sentiment for gold is supported by:

• Anticipated US interest rate cuts
• Ongoing geopolitical tensions

Investment Strategy

Given the positive outlook for both precious metals, Shah suggests an allocation strategy favoring silver:

• 70% allocation to silver
• 30% allocation to gold

This recommendation aligns with the analyst's view that silver has more potential for growth in the near term.

Rupee Outlook

Shah also provided insights on the Indian rupee's performance against the US dollar:

• Support levels: 86.50-86
• Resistance levels: Near 89

The rupee's movement is expected to be influenced by potential US tariff decisions, adding another layer of consideration for investors in the precious metals market.

As with all financial predictions, investors are advised to conduct their own research and consider their risk tolerance before making investment decisions. The precious metals market remains subject to various global economic factors and geopolitical events that can impact prices.

Silver prices in New Delhi reached unprecedented heights on Wednesday, surging by Rs 2,000 to hit a record high of Rs 1,20,000 per kilogram. This dramatic increase follows a significant rally on Tuesday when prices jumped by Rs 3,000 to Rs 1,18,000 per kg.

Factors Driving the Surge

The sharp rise in silver prices is primarily attributed to increased investor demand for safe-haven assets. This surge comes in the wake of the implementation of steep US tariffs on Indian products, escalating trade tensions between the two nations.

Gold Prices Also on the Rise

The upward trend isn't limited to silver alone. Gold prices have also seen an uptick:

Prices are per 10 grams

Market Analysis

Market analysts point to several factors contributing to the continued upward movement in precious metals:

1. Heightened Political Uncertainty: The recent dismissal of Federal Reserve Governor Lisa Cook has raised concerns about the Fed's independence in policy-setting.

2. Safe-Haven Demand: Investors are flocking to precious metals as a hedge against economic uncertainties stemming from trade tensions and political instability.

3. US-India Trade Relations: The implementation of steep US tariffs on Indian products has created a ripple effect in the commodities market, pushing investors towards safer assets.

Implications for Investors

The record-breaking prices of silver and the concurrent rise in gold prices highlight the current volatility in the global economic landscape. Investors are closely watching these precious metals as potential safe harbors during uncertain times.

As geopolitical tensions continue to influence market dynamics, traders and investors alike will be keenly observing how these prices evolve in the coming days and weeks. The interplay between international trade policies, political decisions, and monetary policy will likely continue to impact the precious metals market in the near term.