Silver, in terms of dollars, took support at $18. It tested this level thrice before rebounding in October. It closed the year at $23.93, gaining 2.8 per cent, outperforming the yellow metal which was flat.
In 2023, silver is expected to shine. Although there might be a price correction on the back of a long-term trendline resistance now, it is likely to resume the rally from $22. A fall below $22 is less likely. On the upside, while $26 can offer some resistance, we anticipate silver to appreciate past this level and hit the resistance band of $28-30 before the end of 2023.
The continuous contract of silver on the Multi Commodity Exchange gained nearly 11 per cent. The gain was better because of the weakness in the rupee, which lost 11 per cent against the dollar.
On the back of a correction in the global market, the silver futures might decline to the support band of ₹64,000-65,000. But eventually, we expect the contract to restart the rally. The RSI and the MACD on the weekly chart, which are currently bullish, show more potential for rally from the current level.
Overall, MCX silver futures, after witnessing a possible corrective decline from here, will hit ₹80,000 before the end of this year.