Silver Signals Decoupling From Gold: $90/Ounce In Sight? What Analysts Say

Silver may be preparing for a decisive breakout as the white metal increasingly decouples from gold's price action, with analysts tracking a fresh move towards the $90-an-ounce mark amid tightening supplies, industrial demand optimism and strong technical momentum.

Spot silver is currently hovering around $86.20 an ounce, according to Kotak Securities' latest commodity levels report, with immediate resistance seen at $87.75, followed by $88.7. A sustained move above these levels could pave the way for the next major resistance near $91.8, analysts said. 

On the domestic bourse, MCX Silver July futures are trading around Rs 2,81,201 per kg, with resistance placed at Rs 2,84,799 and Rs 2,87,023. A breakout above Rs 2,87,000 could potentially trigger a sharp rally towards Rs 2,94,219, according to the report. 

“Silver continues to display relative strength compared to gold, supported by both safe-haven flows and industrial demand expectations linked to renewable energy and electrification themes,” said Anindya Banerjee, head of research at Kotak Securities.

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Analysts believe the gold-silver ratio, a widely tracked indicator measuring how many ounces of silver equal one ounce of gold, has started narrowing, signalling silver's outperformance phase may just be beginning.

"Technically, spot silver needs to decisively clear the $88.70–91.80 resistance zone for the next leg higher. If that happens, the market could quickly start pricing in a move towards $90 and beyond," said Jimesh Chauhan, commodity research analyst at Kotak Securities. 

For MCX traders, analysts are watching the Rs 2,84,800–2,87,000 zone closely. Sustaining above this range may attract fresh momentum buying, while immediate support remains around Rs 2,77,603 and Rs 2,75,380. 

The recent divergence between gold and silver comes as investors increasingly position for stronger industrial metal demand even as gold consolidates near record highs. Silver's dual role as both a precious and industrial metal is seen amplifying upside momentum during risk-on phases.

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However, analysts caution that volatility could remain elevated due to shifting US Federal Reserve rate expectations and broader macroeconomic uncertainty.

"Silver's structure remains bullish as long as prices hold above key support levels. The market is now entering a technically crucial phase where a breakout could accelerate speculative participation," Banerjee added.

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