“Holidays typically lead to increased buying of precious metals, especially in India, a key market for both gold and silver,” said Rahul Sharma, commodity strategist at the India Bullion Association. “This year’s demand is further boosted by favorable market conditions and consumer confidence among retailers.”
Festive season creates strong demand for silver
The Navratri festival, an important period for purchasing precious metals in Hindu culture, has driven robust demand from both traders and private consumers.
This has led to a notable increase in the price of silver, as buyers ramp up their purchases in anticipation of further price increases. The ongoing festivities have seen silver rise more than 2% this week alone.
Adding to the bullish trend, a weakening Indian rupee has made local silver prices more attractive, prompting buyers to anticipate potential price increases.
Analysts believe that demand for investment-grade jewelry and silver will likely continue to support prices in the near term.
“The ongoing festival season is expected to further increase silver prices, which may also push up international prices,” Sharma said.