Silver surged 3.48% to Rs 188064 as investors strategically positioned themselves in anticipation of a potential U.S. Federal Reserve rate cut. However, uncertainty remains concerning the policy outlook for 2026, with market participants speculating about a possible “hawkish cut” from Chair Jerome Powell. The metal has recently reached unprecedented levels, bolstered by declining visible inventories, a resurgence in ETF inflows, and anticipations of an additional supply shortfall this year.
Industrial demand—particularly from solar and green technologies—remains a significant factor bolstering the medium-term bullish outlook. Silver-backed ETFs experienced an addition of nearly 200 tonnes, elevating total holdings to their peak levels since 2022. Last month, a considerable quantity of silver was transferred to London, resulting in a constriction of supply in alternative markets, as inventories on the Shanghai Futures Exchange reached their lowest levels in ten years. In October, Chinese exports surged to an unprecedented 660 tonnes, prompting a significant realignment of global supply chains.
In the interim, U.S. macroeconomic indicators revealed consistent inflation patterns, as evidenced by a 0.3% increase in the PCE index alongside a 0.3% rise in personal spending. Global liquidity concerns endure as borrowing costs stay high, while traders keep a close watch on possible U.S. tariffs following silver’s addition to the U.S. critical minerals list.
Data indicated that silver stocks in London vaults increased by 3.5%, reaching a total of 27,187 tonnes in November. The market experienced short covering, evidenced by a 7.12% decline in open interest to 12,806, coinciding with a price rally of Rs 6,322. Key support is positioned at Rs 182555, and a breach beneath this level may lead to a decline in prices toward Rs 177045. Resistance is established at Rs 191120, and a sustained advance beyond this threshold could initiate an ascent toward Rs 194175.