Silver prices concluded the session with a slight decline, decreasing by 0.07% to Rs 197,755, as investors took profits following a significant rally propelled by constrained inventories and robust industrial demand. The recent addition of silver to the US critical minerals list has previously enhanced sentiment, in conjunction with anticipations of a structural supply deficit. The underlying fundamentals continue to provide support in the medium term.
Strong inflows into ETFs and significant retail purchasing persist, bolstering anticipations of a fifth consecutive annual market deficit. Industrial demand stemming from solar panels, electric vehicles, and data-centre infrastructure continues to be a significant driver, whereas mine production and recycling have remained relatively stagnant for over a decade.
The announcement from China regarding stringent export controls on silver set to take effect in 2026 has heightened immediate purchasing interest. Simultaneously, Chinese stockpiles have declined to their lowest levels in a decade, after unprecedented exports exceeding 660 tonnes in October, which has led to delivery pressures and heightened lease rates in London.
The LBMA indicated that silver holdings in London vaults increased by 3.5% in November, reaching 27,187 tonnes, despite persistently high borrowing costs, which underscore continuing liquidity concerns. From a technical perspective, the market is experiencing new selling pressure, as evidenced by a 1.68% increase in open interest alongside a price decline of Rs 146, suggesting a short build-up. Silver currently finds itself with immediate support at Rs 194,885; a breach of this threshold may lead to a decline in prices toward Rs 192,010. On the upside, resistance is observed at Rs 200,010, with a sustained move above possibly challenging Rs 202,260.