Silver prices declined by 3.17% to Rs 1,45,558 as risk appetite strengthened in response to easing U.S.–China trade tensions and growing optimism regarding a possible resolution to the U.S. government shutdown. U.S. President Donald Trump conveyed optimism regarding the prospect of securing a beneficial agreement with China, while noting the possibility of a postponement in his meeting with President Xi Jinping. Market participants are currently directing their attention towards the crucial U.S. inflation report scheduled for Friday, in anticipation of a widely anticipated rate cut by the Federal Reserve in the coming week.
Last week, silver reached an unprecedented peak of $54.5 per ounce, following a remarkable rally of nearly 40% since late September. This surge can be attributed to a liquidity crunch in London’s silver market, robust demand from India, and optimistic speculation regarding industrial applications, including electric vehicles, data centers, and solar energy.
Investment in global silver ETPs experienced a significant increase, with net inflows reaching 95 million ounces in the first half of 2025. This brought total holdings to 1.13 billion ounces, which is only 7% shy of the peak observed in 2021. In the first half of 2025, Indian retail demand experienced a year-on-year increase of 7%, whereas European demand persisted in its gradual recovery. The Silver Institute reports that the global silver deficit is projected to decrease by 21% to 117.6 million ounces this year, attributed to a modest decline in demand alongside a 2% increase in supply. Industrial demand continues to exhibit strength, with projections indicating a 7% rebound in coin and bar investment.
From a technical perspective, silver is experiencing long liquidation, evidenced by an 8.7% decline in open interest to 21,627 contracts, alongside a price decrease of Rs 4,769. Support levels are identified at Rs 1,43,580 and Rs 1,41,610, whereas resistance levels are positioned at Rs 1,47,760 and Rs 1,49,970.