Silver futures surge to fresh all-time highs on MCX, decoupling from gold as industrial demand and safe-haven flows intensify; Hindustan Zinc stock sees renewed interest.
Recent Development and Why It Matters
Silver futures rallied to a new lifetime high on July 14, with September contracts on MCX touching ₹1,14,875/kg and December contracts hitting ₹1,16,566/kg. This surge comes amid escalating global trade tensions and a renewed bid for safe-haven assets following US President Donald Trump’s 30% tariff announcement on EU and Mexico imports starting August 1.
The price momentum in silver has overshadowed gold, with analysts noting a fundamental shift in market dynamics driven by industrial demand, supply constraints, and structural re-rating, rather than just traditional safe-haven buying. This spike also triggered a 2% rise in Hindustan Zinc, India’s largest silver producer, to ₹434 per share in morning trade.
Also Read : India’s Retail Inflation Drops to 6-Year Low of 2.1% in June on Cooling Food Prices
Market Reaction and Technical Outlook
Silver’s move marks a technical breakout on both domestic (MCX) and global (COMEX) charts. On MCX, silver is hovering near ₹1.15 lakh/kg, while on COMEX, it’s nearing $40/oz, reflecting its divergence from gold and cementing its leadership among commodities.
According to Motilal Oswal’s Manav Modi, silver has outperformed most commodities and may continue to do so due to a “structural re-rating” amid supply-demand mismatches. Gold, on the other hand, appears to be entering a consolidation phase, with August futures on MCX trading near ₹98,170/10g.
From a technical perspective, traders are watching the next resistance for silver at ₹1,17,000/kg, while support lies near ₹1,11,000/kg. Hindustan Zinc, despite the short-term gain, remains 16% lower month-to-date, weighed by concerns after short-seller allegations against Vedanta Group.
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Broader Sector and Index Impact
Hindustan Zinc is in focus due to its silver production, with potential upside if silver demand remains elevated.
Precious metal stocks such as MMTC, Titan, and Kalyan Jewellers may see sentiment-led moves.
The Nifty Metal index could benefit in the short term as bullion prices stay firm.
Currency pressure has added to silver’s domestic gains. The rupee opened 21 paise lower, intensifying inflation concerns and reinforcing silver’s appeal as a hedge.
Trading Sentiment and Watchlist Ahead
Market sentiment remains bullish for silver in the short term, especially as traders await key global triggers. US inflation data, due July 15, could shift expectations for Fed policy, influencing both gold and silver trajectories.
Stocks to Watch:
Hindustan Zinc: Short-term support at ₹420; breakout above ₹440 could trigger fresh buying.
MCX: Rising volatility and volumes in silver contracts make this a beneficiary.
Titan: Sentiment-led play on precious metals, watch near ₹3,100 levels for strength confirmation.
Key Levels:
Silver MCX: ₹1,14,875 resistance breached; next target ₹1,17,000.
Gold MCX: ₹98,500 acting as short-term resistance; support at ₹96,800.
USD/INR: Above 83.65 could add tailwinds to silver.
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