Weak industrial, jewellery demand may drag silver lower, says Kedia Advisory
This story was originally published at 14:20 IST on 4 March 2025
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MUMBAI – The slowdown in global economic growth and weak jewellery demand may push silver prices lower, Kedia Advisory said in a report. The seasonally bearish gold market and rising silver output may also weigh on prices, according to the report.
"Indian silver jewellery demand to decline 6% due to high domestic prices," the brokerage said. Sales of silver coins in the US fell 27% on year in January to 3.5 million ounces, the lowest since 2018, it said.
Silver mines output is projected to grow 3% to 1.05 billion ounces this year. The US-based Hecla Mining reported a 13% on-year increase in silver production to 16.2 million ounces.
US President Donald Trump's tariffs on Canada, Mexico, and China will take effect Tuesday. Global uncertainty remains a key driving force, and US trade policies and the expectation of central bank interventions will determine silver prices going forward, according to the report.
The brokerage advises short-term traders to exit positions after the recent price spike. Technical patterns show silver testing a key Fibonacci retracement level with support at INR 92,980 per kg. The moving average convergence divergence indicator has given a bearish crossover, indicating potential downside risk.
Kedia Advisory said if silver prices fail to hold INR 92,980 per kg then further corrections could be on the cards. End
US$1 = INR 87.34
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Sandeep Sinha
Edited by Rajeev Pai
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