Silver prices surged significantly by 4.79% to close at Rs 1,62,091, driven by revitalized anticipations of an imminent U.S. Federal Reserve rate reduction in light of disappointing labor market statistics. ADP figures indicated that U.S. private employers were reducing their workforce by an average of 11,250 jobs per week through late October, bolstering expectations that the Federal Reserve may consider lowering interest rates in December. Market participants currently assign a 68% probability to a 25-basis-point cut, an increase from the previous 62%. Additionally, Fed Governor Stephen Miran’s advocacy for a more substantial 50-basis-point reduction has contributed to the strengthening of bullish sentiment.
Furthermore, the prevailing optimism regarding the conclusion of the unprecedented U.S. government shutdown bolstered risk appetite, resulting in an increase in both gold and silver prices. In terms of physical assets, silver stocks stored in London vaults increased by 6.8% to 26,255 metric tons, with a valuation of $41.3 billion, as reported by the London Bullion Market Association. The arrival of 1,674 tons from the U.S. and China in October alleviated a constrained liquidity environment, although borrowing costs for silver in London continue to be historically elevated.
Meanwhile, 1,568 tons have exited Comex warehouses since early October, indicating ongoing logistical adjustments within global supply chains. Investment demand exhibited notable strengthening, as global silver ETP holdings reached 1.13 billion ounces by mid-2025 — a figure that stands at merely 7% below the peak levels recorded in early 2021.
The cumulative worth of these assets exceeded $40 billion for the first occasion, indicating strong investor demand. The market experienced a reduction in open interest, which fell by 16.98% to 13,630, indicative of short covering activity. Support is positioned at Rs 1,57,125 and Rs 1,52,160, whereas resistance is identified at Rs 1,64,855 and Rs 1,67,620.