Silver Prices Rebound Across India on Friday; Safe-Haven Demand Returns 

Mumbai, April 10: Fresh buying returned to India’s wholesale silver market on Friday as geopolitical tensions spiked yet again over events unfolding in the Strait of Hormuz. Silver recovered Thursday’s ₹50 per 10 gram fall at the national level to reach ₹2,600 per 10 grams on Friday, snapping back to levels seen earlier in the week following a knee-jerk retracement after Wednesday’s steep surge on safe-haven buying.

Benchmark national silver prices advanced ₹50 to ₹2,600 per 10 grams Friday, erasing Thursday’s decline when prices pulled back to ₹2,550 per 10 grams from ₹2,600 per 10 grams on Wednesday. Safe-haven buying led to aggressive buying of silver Wednesday when prices jumped ₹150 to ₹2,600 per 10 grams on fresh geopolitical concerns. With the exception of South India which usually trades with a healthy premium to the national benchmark, every other market in India moved up ₹50 on Friday. Price increases were equal across all metros and state capitals as well, making it clear that supply-side factors are not contributing significantly to this Friday’s rise and that demand is likely playing a role.

Premium in South Persists

Chennai, Hyderabad and Kerala continued to trade at a ₹50 premium over benchmark national prices on Friday, offering an excellent buying opportunity for users located in those regions. The leading silver-consuming states of India quoted silver locally at ₹2,650 per 10 grams on Friday versus the national price of ₹2,600 per 10 grams. Thursday too these cities traded above India’s floor price of ₹2,600 per 10 grams even as the rest of the country declined to ₹2,550 per 10 grams following Wednesday’s sharp rise, underlining the robustness of demand in this region which keeps it well supported even as most of the country corrects.

Metropolitan cities Recover to ₹2,600

It wasn’t just the usual suspects in Chennai, Hyderabad and Kerala. Mumbai, Delhi, Kolkata, Bangalore, Pune, Vadodara and Ahmedabad too traded up ₹50 on Friday bringing prices in these cities in line with the national average at ₹2,600 per 10 grams. The uniform nature of the recovery, similar to that of the previous day’s decline, again highlights the integration of markets across India where price discovery at the national level now instantly impacts prices in even the most geographically remote of markets. Prices corrected to ₹2,550 on Thursday from ₹2,600 on Wednesday across these cities mirroring the national price action. That means Friday’s rally has simply brought things full circle. Those who bought silver on Thursday at what was the lowest price of the week across markets now find themselves at an accidental discount.

Industrial Silver Demand Helps Too

Demand for silver as a safe haven likely fueled the rapid pace of Friday’s recovery just as investor demand drove prices sharply higher on Wednesday. But industrial demand for silver seems to be acting as a floor on prices as well, providing ballast to silver whenever macro sentiment turns down. Demand from solar photovoltaic modules, electronics manufacturers, wires and cables remains robust which ensures some level of offtake continues into the market even during times of investor pullback. Investment demand isn’t the only factor supporting silver prices on Friday. Demand for silver from industrial sectors has proved supportive of prices too.

Gold Prices Surge on Friday Afternoon; Silver Discounts Tighten Across India
India’s gold market followed silver higher on Friday afternoon with prices in most markets across the country pushing to fresh highs for the week. 24K gold prices in India increased by ₹1,520 per 10 grams on Friday to hit ₹1,53,000 per 10 grams at the national level. The 22K gold price increased to ₹1,40,250 per 10 grams and 18K gold prices advanced to ₹1,14,750 per 10 grams.

Silver Rates Across Cities (10 gm)

Source: www.goodreturns.in