Experts Predict Silver Prices Could Hit $100/oz Before Potential Drop

Silver prices on the Multi Commodity Exchange of India (MCX) dipped on Friday, reflecting a broader weakness in global markets. Investors took profits after a recent surge, and easing concerns over US tariffs contributed to the decline.

Key Developments

• MCX silver prices fell by ₹1,139, or 0.39%, settling at ₹2,90,438 per kg, following a record high of ₹2,92,960 just a day earlier.
• In the international arena, spot silver prices dropped 1.8% to $90.70 an ounce, yet it’s still on track for a weekly gain exceeding 13%, having reached an all-time high of $93.57 in the previous session.
• The recent pullback is attributed to the US decision not to impose import tariffs on critical minerals, although President Donald Trump hinted that duties could still be a possibility in the future, leaving some uncertainty in the market.

Business Impact Despite the short-term correction, silver maintains its appeal as a critical mineral, especially given its importance in solar energy, electric vehicles, and electronics. Analysts suggest that while a sharp correction may be on the horizon, the white metal could continue its rally in the near term.

Market Context The decline in silver prices comes amid a backdrop of fluctuating global markets, where investors are adjusting their positions following recent highs. The market's reaction to tariff news indicates a cautious sentiment among traders.

Industry Context Silver's role as a critical mineral is becoming increasingly significant, particularly in the context of renewable energy and technology sectors. As demand for these applications grows, silver's market dynamics will likely evolve.

Looking Ahead Investors will be watching closely to see if silver can regain momentum or if further corrections are imminent, especially with ongoing geopolitical uncertainties.