Gold Silver Price Today: Gold-silver prices surge, expected to touch new highs soon

Gold Silver Price Today on 28th March 2024 : Two weeks ago experts were advising to add gold to your portfolio and today gold has hit an all time high. Silver is also likely to join this gold boom soon. Silver offers an attractive investment option in the current macroeconomic environment and volatile equity markets. This has the potential to alleviate inflation related concerns.

Silver prices may reach all-time highs

Silver always goes hand in hand with gold. However, it is more volatile than gold. With the current rise in silver prices, it is also expected to touch its all-time high soon. Let us tell you that India is a net importer of silver. India is also included in the five countries of the world where silver is consumed the most. While the country's silver imports touched a record 9,450 tonnes in 2022, it declined to 3,475 tonnes in 2023. However, traders are taking an optimistic stance.

Demand for silver will increase

India imported a record 2,200 metric tonnes of silver in February. More than half of silver demand comes from industries. Booms in areas such as solar and semiconductor chips and the development of electric vehicles using lithium-ion batteries will boost industrial demand and boost silver prices.

Silver prices are expected to increase

March interest rates were left unchanged at 5.25-5.50% at the recently concluded Federal Open Market Committee (FOMC), but the Fed dot plot suggests the possibility of three rate cuts after 2024. Historically, when rates fall, silver prices rise. Many central banks have also started adding precious metals to their portfolios.

The relationship between the dollar and silver

At the same time, silver prices also show an inverse relationship with the US dollar. A stronger dollar is often associated with lower silver prices. With US interest rates already at their peak, the chances of the dollar strengthening from here are limited.