Silver experienced a notable increase of 4.04% to Rs 1,53,691 yesterday, driven by heightened expectations for a potential U.S. interest rate cut and ongoing uncertainty regarding the American economic landscape. Weak U.S. private job data, alongside a significant drop in the University of Michigan Consumer Sentiment Index, which decreased to 50.3 in November—the lowest level since June 2022—has heightened the demand for safe-haven assets, particularly precious metals.
Market participants are currently assessing a nearly 66% likelihood of a 25-basis-point rate reduction in December, as indicated by the reports. Meanwhile, China’s decision to suspend additional export controls on certain rare earth metals and lithium components contributed to a sense of global optimism, although indications of progress in resolving the U.S. government shutdown somewhat diminished the allure of safe-haven assets.
On the physical front, silver inventories in London vaults increased by 6.8% to 26,255 metric tons, valued at $41.3 billion, as inflows from the U.S. and China contributed to alleviating a recent liquidity crunch. Short-term borrowing rates, while reduced, continue to be historically high. Since early October, approximately 1,568 tons of silver have exited COMEX warehouses; however, total inventories continue to be elevated compared to the previous year. Investment demand continues to exhibit strength, as global silver ETP holdings reached 1.13 billion ounces by June 2025—an increase of 95 million ounces in the first half of the year—signifying their peak valuation exceeding $40 billion.
From a technical perspective, the market is experiencing short covering, evidenced by a 16.74% decline in open interest to 16,213, while prices have surged by Rs 5,963. Support levels are identified at Rs 1,50,865 and Rs 1,48,035, whereas resistance levels are observed at Rs 1,55,200 and Rs 1,56,705.