Silver futures experienced a decline of 1.55% yesterday, concluding the session at 1,23,920. This downturn can be attributed to investors capitalizing on profits following a robust rally that was largely fueled by anticipations surrounding U.S. monetary easing. Current market assessments indicate an approximate 98% likelihood of a 25 basis points reduction in the Federal Reserve’s interest rate this month.
This comes in light of recent U.S. economic data revealing that job openings have decreased more than anticipated, reaching 7.181 million in July. In the context of macroeconomic uncertainty and the prevailing demand for safe-haven assets, bullion experienced support; however, the potential for further upside was limited by profit-taking activities. Wider apprehensions surrounding the independence of the Federal Reserve, persistent trade tensions, and geopolitical uncertainties have similarly provided foundational support. In the industrial sector, the demand for silver continues to exhibit strength, especially driven by the rapid expansion of China’s solar industry. Notably, exports of solar cells experienced a remarkable increase of over 70% during the first half of 2025, primarily fueled by substantial shipments to India.
The industrial momentum experienced a notable boost, bolstered by the resumption of trade discussions between the U.S. and China, which in turn enhanced sentiment throughout the metals sector. Investment flows into silver remained robust, as evidenced by global ETP inflows reaching 95 million ounces during the first half of 2025. This surge has propelled total holdings to 1.13 billion ounces, which is merely 7% shy of the all-time high recorded in February 2021. The global silver market is anticipated to experience its fifth consecutive supply deficit in 2025, with industrial fabrication expected to reach a historic 700 Moz.
From a technical perspective, silver is currently experiencing long liquidation, evidenced by a significant decline in open interest, which has decreased sharply by 9.01% to a total of 18,681 contracts, while prices have also seen a reduction of 1,952. Support is identified at 1,23,280, followed by another level at 1,22,640. Conversely, resistance levels are observed at 1,24,755 and further up at 1,25,590.