Silver price in the domestic market is likely to touch Rs 25,000-level soon, mainly on good investment demand supported by firm overseas markets. On Wednesday, silver prices in Mumbai and Ahmedabad markets jumped sharply by nearly Rs 550-600 to trade at Rs 23,765 and Rs 23,519 a kg, respectively.
?Silver prices have witnessed a sharp rally in recent days and likely to cross Rs 25,000 mark soon. However, there is no major physical buying,? a local dealer said. Silver rallied to $19.29 an ounce during early Asian trades in compared to $18.65 late in New York, hitting fresh 27 year high.
?I think investment demand will continue to drive the market. People will buy silver and gold without regard to price. They will buy, simply, because prices are going up,? an analyst said.
MCX silver March 2008 contract was traded around Rs 24,469 a kg on continued buying support. Commex silver division of the NYMEX is expected to rally further from current levels and remain in the ranges of $18.80-19.60 levels.
?March silver on MCX is expected to gain further and trade in the ranges of Rs 24,000-24,800 levels,? Debjyoti Chatterjee of MAPE ADMISI said.
In the Mumbai market, gold spot price reached another new high level of Rs 12,375 per 10 gram while commex gold recovered and sharply rallied supported by rising crude oil prices and a weakening dollar, shrugging worries about sales by the IMF.
Gold for April delivery on the commex hit a high of $959 an ounce, up from Tuesday?s settlement of $948.90. Commex gold April is expected to rally from current levels and trade in the ranges of $949-967 levels. MCX April contract is expected to recover and rally to trade in the ranges of Rs 12,190-12,310 levels, Chatterjee said.