Now Reading: Silver slips below 200 DMA, analyst calls it buying opportunity
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Silver slips below 200 DMA, analyst calls it buying opportunity
Silver slips below 200 DMA, analyst calls it buying opportunity
Silver has fallen sharply below its 200-day moving average, dropping from Rs 2,41,912 to Rs 2,26,000 per kilogram. Commodity expert Navneet Damani of MOFSL said the extreme volatility is typical of silver…
Silver has fallen sharply below its 200-day moving average, dropping from Rs 2,41,912 to Rs 2,26,000 per kilogram. Commodity expert Navneet Damani of MOFSL said the extreme volatility is typical of silver and the absolute bottom may not yet be in.
Despite the crash, industrial demand for silver remains strong, with copper, zinc and aluminum hitting multi-year highs. Damani sees the dip near $60 as a long-term buying opportunity, predicting a rebound towards $75, $82 and eventually $90 per ounce. For domestic investors, he recommends accumulating silver in the Rs 2,10,000 to Rs 2,15,000 range.
Indian Opinion Analysis
Silver's industrial use, especially in solar panels and electronics, has been rising steadily, with the Silver Institute projecting a fourth consecutive year of structural deficit in 2024. The 200-day moving average is a closely watched technical level by traders and algorithm-driven funds, so a break below it can trigger stop-loss selling that exaggerates the move. A sustained recovery would need either a weaker dollar or a fresh catalyst from the Federal Reserve's rate path. The key level to watch is whether silver holds above the psychological support of $22 an ounce in international markets, a close below that would shift the technical outlook decisively bearish.
The RBI sets no floor or ceiling for silver prices, so the market is driven entirely by global cues and domestic import parity. Investors considering the dip should note that silver is roughly three times more volatile than gold on a daily basis, making position sizing critical.
Source: businesstoday.in
This brief was synthesised by AI from the source linked above.
