Silver prices increased by 0.68% to Rs 1,44,342 due to short covering following recent declines, as initial optimism regarding U.S.–China trade progress had a dampening effect on safe-haven demand. The market’s attention is currently directed towards the Federal Reserve’s impending policy decision, with anticipations of a 25-basis-point reduction in interest rates in light of disappointing U.S. inflation figures. Report indicated that private enterprises generated an average of 14,250 jobs weekly over the last month, whereas the Dallas Fed index declined to -9.4, suggesting a deterioration in business activity.
In the interim, substantial silver movements from the United States and China to London have alleviated a liquidity crunch in the global spot market, which had previously resulted in London silver prices trading at an unusual premium compared to U.S. Comex futures. As reported by the LBMA, the London vaults contained 24,581 tons of silver valued at $36.5 billion by the end of September. Investment demand continues to exhibit strength, as global silver ETP holdings reached 1.13 billion ounces by June 2025—merely 7% shy of the 2021 peak—valued at over $40 billion.
Retail investment trends exhibited regional divergence: Europe experienced a modest recovery from a low base, whereas India’s demand increased by 7% year-on-year, indicative of optimistic price expectations. The global silver deficit is anticipated to decrease by 21% to 117.6 million ounces this year, influenced by increased supply and consistent industrial demand of approximately 680.5 million ounces.
From a technical perspective, silver is experiencing short covering, as evidenced by a 1.42% decline in open interest to 20,084. Support stands at Rs 1,40,855; a decline below this threshold may lead to a test of Rs 1,37,370. Conversely, resistance is identified at Rs 1,46,275, with a breach above this level potentially propelling prices towards Rs 1,48,210.