Silver yesterday concluded the trading session down by 2.78% at Rs 1,43,367, as advancements in US-China trade discussions diminished the appeal for safe-haven metals. Anticipation surrounding the upcoming Trump-Xi meeting, bolstered by productive discussions among trade representatives, has diminished investor interest in precious metals. The recent decision by the US to retract its 100% tariff threat, coupled with China’s halt on expanding rare earth exports, has significantly enhanced market sentiment, exerting downward pressure on silver prices.
Moreover, the anticipation of a 25bps rate cut by the US Federal Reserve, in light of subdued inflation data, played a significant role in price dynamics as investors adjusted their portfolios in advance of the policy decision. In London, the liquidity of the silver market has seen an enhancement following substantial inflows from the United States and China, alleviating the recent physical scarcity that had caused spot prices to trade at a premium relative to COMEX futures. As per reports, the vaults in London contained 24,581 tonnes of silver, valued at $36.5 billion, as of the end of September.
In the realm of investments, global silver ETP holdings experienced a notable increase, reaching 1.13 billion ounces in the first half of 2025, which is merely 7% shy of the all-time high recorded in February 2021, bolstered by heightened investor interest and robust pricing dynamics. The demand for retail investment in India increased by 7% compared to the previous year, indicating optimistic price expectations. The Silver Institute anticipates that the global deficit for 2025 will contract by 21%, reaching 117.6 million ounces, as supply marginally exceeds demand.
From a technical perspective, the market is experiencing new selling pressure, with open interest increasing by 0.29% to reach 20,370. Support levels are identified at Rs 1,40,610 and Rs 1,37,855, whereas resistance levels are observed at Rs 1,46,800 and Rs 1,50,235.