Rajesh Rokde, a leading jeweler, predicts that “silver prices may continue to rise as demand remains strong, especially given lower import costs.”
Supporting this trend, India’s silver imports soared to $1.33 billion (Rs 11,038 crore) in August 2024, rising dramatically from $158 million (Rs 1,317 crore) in August 2023.
Gold imports also saw a notable increase, growing 103.71% to around $1.02 billion (Rs 84,401 crore) during the same period. Strong domestic demand, coupled with favorable price conditions, points to continued upward pressure on silver prices.
US interest rate cuts and economic uncertainty are contributing to the bullish sentiment
In the United States, expectations of further interest rate cuts by the Federal Reserve are providing additional fuel for the silver rally. After last week’s 50 basis point cut, market analysts expect another 125 basis points of cuts by 2024.
A weaker US dollar, pressured by these subdued expectations, has made silver more attractive to investors looking to hedge against economic uncertainty.
Kishor Sheth, another jeweler, noted that international demand for silver remains robust. “Favorable market conditions and strong global demand are keeping prices elevated,” he said, highlighting the broader impact of U.S. monetary policy on silver markets.