Silver futures concluded the session with a modest increase, finishing 0.21% higher at 154482, buoyed by growing anticipations of a US rate reduction in December following the dovish remarks from certain Federal Reserve officials. Nonetheless, the presence of mixed macroeconomic signals persisted in obscuring market sentiment. The postponed US nonfarm payrolls report indicated robust job growth in September; however, the unemployment rate increased to 4.4%, marking a four-year peak. Fed officials articulated contrasting perspectives, as Chicago Fed President Goolsbee conveyed reservations regarding the preemptive reduction of rates, whereas Boston Fed President Susan Collins indicated a reluctance to decrease rates at the forthcoming FOMC meeting. Silver remains poised to register weekly losses exceeding 1%.
Reports says that silver inventories in London vaults increased by 6.8% in October, reaching 26,255 tonnes, supported by significant inflows from the US and China that alleviated a pronounced liquidity squeeze. In the interim, 1,568 tonnes were withdrawn from Comex warehouses amidst uncertainty related to tariffs, although total stocks continue to be elevated compared to the previous year.
Holdings in silver-backed ETPs have increased by 18% year-to-date, indicative of investor apprehensions regarding stagflation, fiscal risks in the United States, and ongoing geopolitical tensions. Global silver demand for 2025 is anticipated to decrease by 4%, reaching 1.12 billion ounces, primarily driven by reductions in the industrial, jewelry, and bar-coin segments. Industrial demand is projected to decline by 2%, whereas jewelry consumption could decrease by 4% as a result of unprecedented local prices in India.
The market is experiencing short covering, as evidenced by a 4.99% decline in open interest, bringing it to 10,338. Support levels are established at 153030 and subsequently at 151585, whereas resistance is identified at 155305, with the potential for a test of 156135 if surpassed.