Robust Fundamentals Boost Silver, COMEX Futures Soar 2.6%

29 Nov 2022 , 11:52 AM

Silver futures scaled up impressively today as a recent retreat led to good bargain buying amid a modest decline in the US dollar. The commodity currently trades at $21.74 per ounce, up 2.63% on the day after testing a one week low near $21 per ounce in last session. The Indian demand trends are supportive for the white metal, thereby keeping it elevated in recent weeks despite visible stress in key industrial metal Copper. Robust fundamentals are capping the downside and the commodity is up more than $2.50 per ounce in last one month. Global demand for silver is expected to rise 16 per cent this year to 1.21 billion ounces, creating the biggest deficit in decades, according to the Silver Institute last week. Use of silver by industry, for jewellery and silverware and for bars and coins for retail investors were all forecast to reach record levels, the institute said. Automakers are using more silver as the amount of electronics in vehicles increases, but the sector accounts for only around 5 per cent of total demand. Solar panels account for around 10 per cent of silver demand. The Silver Institute predicted a deficit of 194 million ounces this year, up from 48 million ounces in 2021.Powered by Commodity Insights