Silver prices increased by 0.65% to close at Rs 154687, buoyed by anticipations of a forthcoming U.S. Federal Reserve rate cut in light of emerging indicators of economic fragility. Recent U.S. data revealed significant job losses in October, especially within the government and retail sectors, as consumer sentiment declined to a 3½-year low in early November. Markets are currently assigning a nearly 60% probability to a 25-basis-point Fed rate cut in December. Some policymakers, including Fed Governor Stephen Miran, are advocating for a more substantial half-point reduction in light of easing inflation and increasing unemployment.
The U.S. Senate’s approval of legislation to resume government operations following a 40-day shutdown has marginally diminished the demand for precious metals as safe-haven assets, while market attention continues to center on economic and monetary indicators. In October, silver stored in London vaults experienced an increase of 6.8%, reaching a total of 26,255 metric tons, with a valuation of $41.3 billion, as per reports.
The inflow of 1,674 tons from the U.S. and China alleviated the liquidity crunch in the London market, contributing to a reduction in short-term borrowing rates from their record highs. In the interim, approximately 1,568 tons of silver have departed from Comex warehouses since the beginning of October, although stock levels continue to be elevated compared to the previous year. Global silver ETP investments experienced a significant increase, recording net inflows of 95 million ounces in the first half of 2025.
This development elevated total holdings to 1.13 billion ounces, which is merely 7% shy of the record high established in 2021. Silver is experiencing a reduction in short positions, as evidenced by a 1.69% decline in open interest, now at 15,944. Support levels are identified at Rs 153100 and Rs 151510, whereas resistance levels are observed at Rs 156180 and Rs 157670.