Silver continued trading at its record high levels yesterday on weak dollar, speculation of short supply and on overall strengthening in commodity market.
Silver has been most preferred investors' choice during the rally in the market in recent past supported by geopolitical tension around Korean region and European debt crisis.
We expect the prices to trade in upper range as strong investment flows coupled with industry demand and geopolitical tension may support prices.
Despite the world's largest silver-backed exchange-traded fund, iShares Silver Trust holdings slightly slipped on Dec 2, the fundamentals are still strong.
The further weakening dollar may support the rally in medium term. Today, E-Silver opened at Rs.4409/100 gm and touched a high of Rs.4420.7/100 gm.
