Silver Price Forecast/Prediction (September 2023): Silver experienced some volatility at higher price levels after experiencing significant gains in the first four months of 2023.
Silver experienced some volatility at higher price levels after experiencing significant gains in the first four months of 2023. However, after every major dip, the domestic silver price has been seeing a range shift on the higher side, according to a report by Motilal Oswal Financial Services (MOFSL).
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As of today, Silver is selling in the retail market at around Rs 74,000 per kg. In the last 10 days, however, the silver price has seen a dip of around Rs 1000. It was selling at around Rs 75,200 per kg in the retail market on September 6, 2023.
The MOFSL report says that the momentum in silver is likely to continue and the metal could add another 15% over the next few quarters.
How Silver performed in 2023
Silver had a strong performance in early 2023. Driven by concerns in the US banking and debt sectors, the metal gained 11% in the first four months of this year. However, this momentum was somewhat “tempered by the Federal Reserve’s ‘Hawkish Pause’ policy, impacting both precious and industrial metals”, the MOFSL report said.
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Potential catalysts
The report has highlighted some favourable circumstances that paint a “promising outlook for silver market”. These include:
- Demand for silver in green technologies such as solar energy, electric vehicles (EVs), and 5G technology
- Fed’s raised growth forecast for the US in 2023, signalling a soft landing,
- Data from the Silver Institute that suggests market balance could remain in deficit for the third consecutive year, further supporting silver prices
- Positive signals from China regarding economic growth and industrial demand are potential catalysts for silver’s performance
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Should you buy Silver?
In the report, MOFSL has advised continuous accumulation at lower levels with immediate support at Rs 70,500, while strong medium-term support is at Rs 68,000. On the higher side, MOFSL could see prices targeting Rs 82,000 followed by Rs 85,000 over the next 12 months.
As we approach the festival season, domestic demand is expected to bolster silver prices positively.
“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.
