Silver prices experienced a notable decline of 2.31%, concluding at Rs 178,138 as traders took profits and reevaluated the Federal Reserve’s policy perspective for 2026. Weak U.S. labor market data bolstered expectations for a 25 basis point rate cut in the upcoming week. ADP data indicated an unforeseen reduction in private payrolls, whereas Challenger job cuts experienced a 25% increase year-on-year, with U.S. employers declaring 71,321 layoffs in November—the highest figure for that month since 2022. While layoffs have decreased from the 153,074 recorded in October, this trend indicates increasing stress within the labor market and bolsters the argument for monetary easing.
Notwithstanding the decrease in price, the underlying fundamentals for silver continue to exhibit support. Silver-backed ETFs experienced an increase of nearly 200 tonnes, elevating global holdings to their peak since 2022. Last month, an unprecedented volume of silver entered London, alleviating the constraints in the crucial OTC hub, while stockpiles in Shanghai Futures Exchange warehouses fell to their lowest levels since 2015.
In October, China exported over 660 tonnes of silver, marking the highest level on record, in an effort to address domestic shortages; however, concerns regarding liquidity remain prevalent. In October, London vault holdings increased to 26,255 tonnes, reflecting a month-on-month rise of 6.8%. This uptick was driven by an inflow of 1,674 tonnes, which contributed to a moderation in borrowing rates, although these rates continue to be elevated.
From a technical perspective, there is a clear indication of fresh selling pressure, as evidenced by a 5.59% increase in open interest to 14,599, coinciding with a price decline of Rs 4,214. Immediate support is positioned at Rs 175,705, with a subsequent downside test anticipated at Rs 173,265. Resistance is currently established at Rs 181,735, and a breach of this threshold may propel prices toward Rs 185,325.