Silver yesterday concluded the trading session down by -0.67% at Rs 142,145, as profit-taking activities were observed following the metal’s ascent to a record high earlier in the day. Losses were, however, mitigated by safe-haven demand arising from U.S. political uncertainty regarding a potential government shutdown and increasing expectations of a Federal Reserve rate cut.
The U.S. Labor Department has confirmed that economic data releases, including the key jobs report, would be suspended in the event of a shutdown, thereby amplifying investor caution. From a fundamental perspective, the Silver Institute anticipates that the market will conclude 2025 in a deficit for the fifth consecutive year, with global output projected at 844 million ounces, falling nearly 100 million ounces short of demand. Industrial usage continues to be a significant factor, propelled by the adoption of solar energy, as evidenced by China’s solar installations and a 40% increase in solar cell exports, underscoring robust structural demand.
Furthermore, the increasing significance of silver in electronics and data centers persists in supporting long-term consumption trends. Investment flows demonstrated a supportive trend, as silver ETPs experienced net inflows of 95 million ounces in the first half of 2025, elevating global holdings to 1.13 billion ounces — a figure that stands 7% below the historical peak.
From a technical perspective, silver is experiencing renewed selling pressure, evidenced by a 3.9% increase in open interest to 20,160, alongside a decline in prices of Rs 954. Immediate support is established at Rs 140,020, with additional downside potential extending towards Rs 137,895. Resistance is identified at Rs 144,300, and a breakout above this level could elevate prices to Rs 146,455.