India's silver futures may power to a new psychological level of Rs30,000 per kg later this month, tracking a weak dollar and riding on industrial demand on the back of a global economic revival, analysts said.
Silver futures on the Multi Commodity Exchange struck a new contract high of Rs28,490 per kg, before trading at Rs28,410 per kg, up 1.23% at 4:10pm.
"The bias is still on the upside on continuing dollar weakness," said Praveen Singh, an analyst with Sharekhan Commodities.
The dollar eased back from its biggest rise in three weeks the previous session, as traders awaited US inflation data and minutes from the Bank of England's November meeting for further direction.
"The bullish momentum is likely to sustain in silver. Compared to other metals, silver has underperformed other base metals in recent months," said Pranav Mer, an analyst with India Infoline in Mumbai.
"Technically as well, silver has given a good breakout above Rs28,000," Mer said.
The white metal is usually influenced by gold as investors view all precious metals as one asset class. But the metal also takes a cue from base metals, particularly copper, as it is partly an industrial metal.
Domestic copper has more than doubled so far this year on Chinese stockpiling and hopes of demand on economic recovery overseas, while silver has gained 58%.
