
Silver prices experienced a notable increase of 2.79%, concluding at Rs 1,49,855 per kg. This rise can be attributed to robust safe-haven demand, fueled by escalating global uncertainties and the ongoing U.S. government shutdown, which has now extended into its second week without a resolution. The shutdown has cast a shadow over the U.S. economic outlook and postponed essential data releases, thereby heightening investor interest in precious metals. Furthermore, strong physical demand from the solar and electronics sectors persists in bolstering prices, as the Silver Institute anticipates a global supply deficit for the fifth consecutive year in 2025.
Investor sentiment continued to improve as markets anticipated an additional 25-basis-point reduction in U.S. Federal Reserve rates for both October and December, bolstered by dovish comments from Fed officials. HSBC has increased its average silver price forecast for 2025 to $38.56 per ounce, up from $35.14, attributing this adjustment to anticipated rises in gold prices and a resurgence in investor demand.
In the interim, worldwide silver exchange-traded product holdings experienced a significant increase, attaining 1.13 billion ounces by mid-2025—merely 7% shy of their historical peak—with an aggregate value surpassing $40 billion for the first occasion. Despite forecasts indicating a reduction in the supply deficit to 117.6 million ounces by 2025, retail investment demand, especially from India, continues to exhibit strength with a 7% increase year-on-year.
From a technical perspective, the market is experiencing short covering, evidenced by a significant decline in open interest of 22.86% to 21,178, alongside a price increase of Rs 4,063. Support levels are identified at Rs 1,47,710 and Rs 1,45,565, whereas resistance is anticipated at Rs 1,51,140, with a potential upward movement toward Rs 1,52,425 contingent upon sustained buying momentum.