Silver futures experienced a decline of 1.55% yesterday, concluding the day 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 expectation is bolstered by recent data from the United States, which reveals that job openings have declined more than anticipated, reaching 7.181 million in July. In the context of macroeconomic uncertainty, alongside a persistent 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 also provided a foundational level of support. In the industrial sector, the demand for silver continues to be strong, especially driven by the rapidly expanding solar industry in China. Notably, solar cell exports 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 fostered a more positive sentiment throughout the metals sector. Investment flows into silver remained robust, as evidenced by global ETP inflows reaching 95 million ounces in 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 an unprecedented 700 Moz.
From a technical perspective, silver is experiencing a phase of long liquidation, evidenced by a significant decline in open interest, which has decreased sharply by 9.01% to a total of 18,681 contracts. Concurrently, prices have also seen a reduction, falling by 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, with a further resistance point at 1,25,590.