Silver yesterday closed down by 0.37% at Rs 1,48,287, influenced by diminishing expectations for additional Federal Reserve rate cuts and positive sentiment regarding a U.S.–China trade agreement, which weighed on the precious metal. The two nations reached a one-year agreement concerning rare earths and critical minerals, which includes tariff modifications and commitments for agricultural purchases; however, there is still uncertainty regarding the longevity of this arrangement.
Hawkish remarks from Federal Reserve officials, notably Dallas Fed President Lorie Logan, who expressed opposition to further cuts in light of ongoing inflation and a stable labor market, bolstered the dollar and diminished the attractiveness of silver. In the interim, liquidity within the London silver market has seen an enhancement, attributed to substantial metal shipments from the U.S. and China that have alleviated recent constraints. As reported by the LBMA, the London vaults contained 24,581 tons of silver, which was valued at $36.5 billion as of the end of September.
Silver exchange-traded product holdings experienced a significant increase, with net inflows of 95 million ounces in H1 2025 elevating total holdings to 1.13 billion ounces — only 7% shy of the record high set in 2021. Retail investment trends demonstrated resilience in India, increasing by 7% year-on-year, whereas Europe’s recovery persisted from a diminished baseline. The Silver Institute has forecasted that the global silver deficit will decrease by 21%, reaching 117.6 million ounces this year, attributed to a slight reduction in demand coupled with an increase in supply.
The market is currently experiencing new selling pressure, evidenced by a 1.09% rise in open interest to 19,814, alongside a price decline of Rs 553. Silver is currently positioned with support at Rs 1,47,190; a decline below this level could lead to a test of Rs 1,46,095. Conversely, resistance is identified at Rs 1,49,690, with the possibility of an upward movement to Rs 1,51,095 upon a breakout.