Silver experienced a decline of -0.88% yesterday, settling at 124,461. This downturn can be attributed to profit booking following recent significant gains, which were largely fueled by anticipations of a U.S. Federal Reserve rate cut scheduled for this month. The sentiment was initially supported by a U.S. jobs report that fell short of expectations last week, indicating a significant drop in job growth for August and an increase in unemployment, reaching a nearly four-year high of 4.3%.
These developments have substantiated a softening labor market, thereby reinforcing the argument for a potential rate cut in the forthcoming Federal Reserve meeting. Traders have completely accounted for a 25-basis-point reduction, while assigning an 8% likelihood to a 50-basis-point decrease. In the realm of industry, China’s solar cell exports experienced a remarkable increase of over 70% during the first half of 2025. This surge was predominantly fueled by shipments to India, which in turn bolstered the physical offtake of silver in the short term. Demand for safe-haven assets was influenced by apprehensions regarding the independence of the Federal Reserve, alongside rising geopolitical tensions and ongoing trade frictions. In the interim, worldwide silver ETP holdings experienced a notable increase, reaching 1.13 billion ounces by June 30, which stands at a mere 7% below the historic high of 1.21 billion ounces recorded in February 2021.
The value of these holdings surpassed an unprecedented threshold, exceeding US$40 billion in June. From a technical perspective, the silver market is experiencing a phase of long liquidation, evidenced by a decrease in open interest of -1.68%, which has settled at 17,660 lots. Silver is currently establishing a support level at 123,705, with the possibility of a decline to 122,945 should selling pressure continue. Resistance is identified at 125,750, and a persistent movement above this threshold may propel prices towards 127,035.