Silver Prices Surge Amid Strong Demand but Face Near-Term Downside Risks

Silver prices have surged over 200% since April, driven by structural supply deficits, rising industrial demand, and central bank interest, reaching record highs above 2,90,000 INR per kilogram domestically. Analysts have raised price targets amid strong investor demand. However, recent US dollar strength, improved US unemployment data, and easing geopolitical tensions have pressured silver prices, sparking speculation of a potential near-term peak. Some market watchers suggest US regulators might raise margin requirements to curb volatility, as done earlier this year.