Silver prices could move higher early this week, possibly testing $17.00 before tapering off slightly. The roll from March positions into forward months in the New York market is mostly complete.
This could take some support away from prices, with prices dropping back toward $15.25.
The Indian government recently raised import duties on silver and gold, which makes silver more expensive in the domestic markets and raises the prospects of resumed unreported imports of silver and gold into India.
High silver prices are expected to put a lid on silver demand from India, especially in the jewelry and silverware sectors.
Many market participants forecast that silver imports to India in 2010 could fall to around 32.2 million ounces, down 25.9% from an estimated 43.4 million ounces in 2009.
Investment demand for silver in major markets continues to be firm. There has been little redemption in some of the ETFs. Total ETFs have been rising, albeit at a slow pace.
Combined ETF silver holding reached a record 474.2 million ounces at the end of last week, up slightly from 473.6 million ounces on 19 February.
Source : commodityonline.com