Silver prices experienced a modest increase of 0.12%, concluding at 1,27,132. This uptick can be attributed to short covering, following recent declines that were instigated by the U.S. Federal Reserve’s prudent policy approach. In the context of the Federal Reserve’s recent decision to reduce interest rates by 25 basis points, Chair Jerome Powell underscored a cautious, “risk-management” strategy regarding monetary easing.
He indicated the possibility of two additional rate cuts within the current year, yet projected only a single cut in 2026, which stands in contrast to the prevailing expectations within the broader market. In the interim, U.S. jobless claims experienced a significant decline, reaching 231,000. This development highlights a degree of resilience within the labor market, even in the face of recent disruptions caused by fraudulent filings. On the demand front, silver continues to experience advantages stemming from robust industrial consumption, particularly within the solar, electric vehicle, and electronics sectors, alongside ongoing supply constraints that persist in the market.
In the first half of 2025, silver-backed exchange-traded products experienced net inflows amounting to 95 million ounces, resulting in a total of 1.13 billion ounces held globally. This figure represents a mere 7% shortfall from the all-time highs previously recorded, while the overall valuations have exceeded $40 billion for the inaugural occasion. Retail investment trends exhibit a mixed landscape: Europe is demonstrating a gradual recovery from previously low levels, whereas India has recorded a substantial 7% year-on-year increase in the first half of 2025, indicative of optimistic price expectations. The Silver Institute projects that the global silver deficit will contract by 21%, reaching 117.6 million ounces in 2025. This adjustment comes as industrial demand remains stable following a peak of 680.5 million ounces in 2024, even as the demand for jewelry and silverware experiences a decline.
From other perspective, silver is experiencing a new wave of buying activity, as evidenced by an increase in open interest of 0.4%, bringing the total to 17,824. Concurrently, prices have risen by 148. Support is established at 1,25,870; should this level be breached, a decline towards 1,24,600 could be anticipated. Conversely, resistance is positioned at 1,27,970, and a breakout above this threshold may propel prices towards 1,28,800.