Silver prices declined by 0.62% to Rs 1,54,151 per kg as the market absorbed the U.S. Federal Reserve’s October minutes, which underscored a division among policymakers regarding the pace and timing of rate cuts. This development has tempered the recent rally in metals and bolstered the dollar. In September 2025, the U.S. economy experienced an addition of 119,000 jobs, surpassing expectations, while wage growth modestly exceeded forecasts at 3.8%. Nonetheless, the unemployment rate increased to 4.4%, marking the highest level since October 2021, thereby sustaining safe-haven demand in the face of persistent macroeconomic and geopolitical uncertainties.
Physical fundamentals continued to provide support for silver, bolstered by robust technical momentum following last month’s breach of the $52 per ounce threshold and sustained steady buying from Asia. In India, the wedding season stimulated physical demand, whereas potential U.S. tariffs enhanced the allure of safe-haven assets. London vaults experienced an increase in silver inventories, reaching 26,255 metric tons, which represents a 6.8% rise month-on-month.
This development has helped to alleviate a recent liquidity crunch, as inflows from the U.S. and China have contributed to a reduction in borrowing rates. In the interim, Comex warehouse stocks have decreased by 1,568 tons since the beginning of October; however, inventories continue to be high on a year-over-year basis, largely attributable to uncertainty stemming from tariffs. Holdings in exchange-traded products have increased by approximately 18% year-to-date, indicative of ongoing investor concerns regarding stagflation, Federal Reserve policy, and global instability.
Silver is currently experiencing renewed selling pressure, as indicated by an increase in open interest of 1.71% to 12,394 contracts, while prices have declined by Rs 956. Support is established at Rs 1,52,665, with potential further declines to Rs 1,51,180. Conversely, resistance appears at Rs 1,56,120, and a breach could aim for Rs 1,58,090.