Silver prices concluded the session unchanged at Rs 154151, indicating a measured market sentiment as investors strategically aligned themselves in anticipation of the forthcoming FOMC meeting in December. Expectations that the US Federal Reserve will maintain its current interest rates in December have solidified, following indications from policymakers regarding ongoing inflationary pressures and economic uncertainties.
The postponed report presented a complex picture, revealing an uptick in employment growth for September, juxtaposed with a rise in the unemployment rate to 4.4%, marking the highest level in four years. Comments from Fed Governor Michael Barr regarding the need for a careful approach to future rate cuts also played a role in fostering a cautious sentiment. For the week, silver is poised to register a decline exceeding 1%. Physical factors
However, provided assistance. The wedding season in India has bolstered demand, while the ambiguity surrounding possible US tariffs on silver has enhanced the metal’s allure as a safe haven. In October, London vault silver holdings experienced an increase of 6.8%, reaching a total of 26,255 tons. This rise contributed to alleviating the liquidity crunch, following inflows from both the US and China. Comex inventories, notwithstanding recent outflows of 1,568 tons, continue to be elevated on a year-on-year basis owing to uncertainties related to tariffs.
ETP holdings experienced an 18% increase through November 6, indicative of growing investor apprehension regarding stagflation, geopolitical tensions, and the sustainability of fiscal policies. Silver is currently experiencing long liquidation, as evidenced by a 14.19% decrease in open interest. Support is positioned at Rs 151275, with the potential for a test of Rs 148395 should it be breached. Resistance stands at Rs 156110, and a breakout could propel prices toward Rs 158065.