Silver could test $50 per ounce, India demand remains strong: Metals Focus

Silver prices could pause around $45-46 per ounce in the near term, but a continued rally in gold may push it higher. “If the gold price continues, then probably $50 per ounce is where the next big target for silver is,” said Harshal Barot of Metals Focus.Barot noted that India’s silver demand remains firm despite concerns about jewellery imports. “Based on our conversations, the import numbers that we probably come in for September and October are going to be high,” he said, pointing to strong retail investment demand and festive buying.

Also Read | Govt imposes import curbs on plain silver jewellery till March next year

On jewellery consumption, Barot said volumes have declined, but investment demand is offsetting some of the weakness. Gold jewellery demand is down 20-30% in recent weeks, while silver jewellery is lower by about 5-10%. He explained, “Investors who think gold is too expensive at the moment see scope for silver to outperform.”Also Read | Gold prices ease to ₹1.12 lakh per 10 grams in India ahead of US inflation data

Looking ahead, Barot said the gold rally may consolidate between $3,800 and $4,000 per ounce. He added that medium-term factors such as diversification by institutional investors and central bank purchases remain supportive for gold, even if the pace of recent gains may not be sustainable.

For the full interview, watch the accompanying video

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