Silver yesterday concluded the trading session with a decline of 0.36% at Rs 1,47,758, as market participants assessed the implications of U.S. monetary policy in the context of diminishing trade tensions between the U.S. and China. The Federal Reserve implemented an anticipated 25 basis points rate reduction, yet Chair Jerome Powell warned that a subsequent cut in December remains uncertain, leading traders to focus on forthcoming U.S. economic indicators, including ADP jobs and ISM PMI reports, for additional guidance.
Sentiment was moderated by enhanced trade relations, as China consented to halt export restrictions on rare earths and inquiries into U.S. semiconductor companies, while Washington deferred further tariffs and eliminated a proposed 100% levy on Chinese exports. Simultaneously, liquidity pressures in London’s silver market have diminished following significant inflows from the U.S. and China. As of the end of September, London vaults contained 24,581 tonnes of silver, valued at $36.5 billion, as reported by the LBMA. In the first half of 2025, investments in silver ETPs experienced net inflows amounting to 95 million ounces, resulting in a total of 1.13 billion ounces in global holdings, which is only 7% shy of the peak levels recorded in 2021.
In India, retail investment demand has experienced a year-on-year increase of 7%, indicative of robust price expectations. The Silver Institute anticipates a 21% reduction in the global deficit, bringing it down to 117.6 million ounces this year. This adjustment is attributed to stable industrial demand and increased purchases of bars and coins, which are compensating for a decline in jewellery and silverware consumption.
From a technical perspective, the market is experiencing new selling pressure, as evidenced by a 2.5% increase in open interest to 20,322, alongside a price decline of Rs 529. Support levels are identified at Rs 1,46,685 and Rs 1,45,605, whereas resistance is positioned at Rs 1,49,295 and Rs 1,50,825.