Silver prices fell by 2.36% to close at Rs 1,46,324 as markets responded to news of a ceasefire in the Middle East, prompting profit-taking after previously reaching a historic high exceeding $51 (1,53,000) on the MCX. The notable increase observed earlier in the session was driven by robust demand for safe-haven assets, constrained supply, and ongoing apprehensions regarding U.S. fiscal vulnerabilities, escalating global debt levels, and anticipations of declining interest rates. The scarcity of readily accessible silver in the London market additionally provided support.
The Silver Institute projects that the global silver deficit will decrease by 21% to 117.6 million ounces in 2025, driven by a 2% increase in total supply and a 1% decline in demand. Industrial consumption is expected to hold firm at a historic high of approximately 680 million ounces, whereas demand for jewellery and silverware may experience a decline.
Nevertheless, the demand for silver coins and bars is projected to recover by 7% following the significant drop experienced last year. By mid-2025, silver ETP holdings increased to 1.13 billion ounces, reflecting robust investor demand, with the total value surpassing $40 billion for the first time.
The market is currently experiencing renewed selling pressure, evidenced by a 21.23% increase in open interest to 26,885 contracts, alongside a price decline of Rs 3,531. Silver currently exhibits immediate support at Rs 1,42,350, with a potential decline below this level possibly leading to a test of Rs 1,38,380. Conversely, resistance is identified at Rs 1,51,840, beyond which prices may approach Rs 1,57,360.