Our outlook yesterday on MCX SILVER Future was proven accurate. SILVER prices witnessed a speculative jump more than 6% since yesterday. Also, witnessed biggest intraday gains after 20 December 2022.
From the domestic front, Silver jumped abruptly, as after the Indian government on Wednesday announced an increase in import taxes on silver and silver dore. The move comes as the Centre aims to align the duty structure with gold, pulling silver imports up to 15% and silver dore to 14.35%.
India is the world’s biggest importer of silver.
“I also propose to increase the import duty on silver dore, bars and articles to align them with that on gold and platinum,” Finance Minister Nirmala Sitharaman said, while she was presenting the Budget for 2023-24 in Parliament.
India raised its import duty on gold in July 2022.
The basic customs duty on silver was raised to 10% from 7.5% and Agriculture Infrastructure and Development Cess (AIDC) on imports to 5% from 2.5%. Silver dore will carry a 10% basic import duty and 4.35% AIDC.
Local silver prices jumped by up to 4.5% after the duty changes. The import duty on articles made of precious metals was increased to 25% from 22%. There has been no change in import duties on gold.
MCX Silver prices witnessed a speculative increase. Silver futures bounce back from low 68613 and are currently trading at 72135 levels.
Technical View
Near future resistance is seen at 72950-73100. A long bullish candlestick on the daily chart is still indicating bullishness in SILVER future. However, the ECB and BOE meeting decision will decide the next move of SILVER Future.
Now, temporary dip towards 71600-71700 could witness pullback and the SILVER Future may test next resistance 72950.
On the downside, a break below 71200 only could show profit booking. Silver future could test 70600-70100 next support if break 71200.
Furthermore, ECB and BOE decisions and press conferences will drive evening session momentum. If the decision will favorable for Euro and Pound then SILVER Future could extend recent bullish momentum
Alternatively, any unfavorable news about the Euro, could create a probability for  temporary correction.