Prices increased by 2.03% to close at Rs 1,48,512, bolstered by safe-haven demand in the context of rising global trade and geopolitical tensions. Speculation regarding potential U.S. export restrictions targeting China and sanctions on significant Russian oil producers has heightened investor interest in precious metals. Furthermore, the positive outlook regarding silver’s enduring industrial applications in electric vehicles, solar panels, and data centers contributed to additional upward momentum.
Supply tightness in key vaults in London and Shanghai contributed to the rally; however, recent shipments of silver from the U.S. and China alleviated the liquidity squeeze in London’s over-the-counter market. As per reports, the quantity of silver stored in London vaults amounted to 24,581 tons, with a valuation of $36.5 billion at the close of September. In the realm of investments, silver-backed exchange-traded products experienced net inflows of 95 million ounces during the first half of 2025, elevating total holdings to 1.13 billion ounces—merely 7% shy of the historical peak of 1.21 billion ounces recorded in early 2021.
The Silver Institute anticipates a reduced global deficit of 117.6 million ounces in 2025, with supply projected to increase by 2% while demand is expected to decline by 1%. In India, retail investment demand exhibited resilience, increasing by 7% year-on-year, whereas European investment demonstrated a steady path toward recovery. Industrial demand is projected to sustain its momentum following last year’s unprecedented total of 680.5 million ounces.
From a technical perspective, the market is experiencing short covering, evidenced by a 4.84% decline in open interest to 20,628, alongside a price increase of Rs 2,954. Silver establishes a support level at Rs 1,46,345 and Rs 1,44,185, while encountering resistance at Rs 1,50,220 and Rs 1,51,935.