Silver prices experienced a significant increase, closing with an 11.84% gain at Rs 2,51,012, driven by intensified geopolitical uncertainty and robust underlying fundamentals that rekindled strong buying interest. Markets maintained their attention on the ongoing tensions in the Russia–Ukraine conflict, particularly in light of reports regarding a suspected Ukrainian drone incident near President Putin’s residence, as peace negotiations persist with several key issues still unresolved.
Increased geopolitical risk premium has surfaced following signals from the United States regarding potential further strikes on Iran contingent upon the advancement of its nuclear and missile programs, coupled with an operation targeting a drug-related facility in Venezuela. This environment has sustained elevated demand for safe-haven and strategic metals.
Despite short-term fluctuations, silver is poised for an impressive annual increase of approximately 180%, signifying one of its most robust yearly performances since 1979. Prices remain supported by strong industrial demand, persistent global supply constraints, ongoing ETF inflows, central bank purchases, and the context of three US rate cuts, as markets increasingly anticipate additional monetary easing in 2026. Nonetheless, speculative excess has led to regulatory intervention, as CME Group has increased margin requirements for March 2026 silver contracts to approximately $25,000, a measure intended to mitigate volatility following a series of record highs.
From a technical perspective, the market is experiencing new buying activity, as evidenced by a 5.62% increase in open interest to 12,712, coupled with a price increase of Rs 26,583. Support is identified at Rs 2,37,620, with additional support at Rs 2,24,230. Resistance is positioned at Rs 2,57,880, and a sustained upward movement may challenge the level of Rs 2,64,750.