Silver prices experienced a notable decline, closing 1.31% lower at Rs 287,762, as risk premiums across commodities diminished following the U.S. decision not to impose tariffs on critical minerals. Concerns regarding possible U.S. import tariffs previously spurred a vigorous rally in silver and base metals, prompting traders to expedite shipments into the U.S. Safe-haven demand also moderated following U.S. President Donald Trump’s indication that executions of protesters in Iran had ceased, thereby diminishing immediate geopolitical escalation risks. Notwithstanding the recent correction, silver continues to find support on a more extensive weekly framework.
The metal persists in gaining advantages due to its strategic significance following its inclusion on the U.S. critical minerals list, underscoring its vital contribution to solar energy, electric vehicles, and advanced electronics. Anticipations regarding future U.S. rate reductions further support sentiment, even as Federal Reserve officials emphasized the necessity of upholding a restrictive approach until inflation demonstrates more definitive indications of easing.
On the fundamental side, silver holdings in London vaults increased by 2.3% month-on-month, reaching 27,818 tonnes by the end of December 2025, underscoring consistent institutional interest. Major banks maintain a positive outlook for the medium term, with Commerzbank forecasting a price of $95 per ounce by the end of 2026.
The market is experiencing new selling pressure, as evidenced by a 5.19% increase in open interest concurrent with a decline in prices, suggesting a bearish sentiment among investors. Silver currently exhibits immediate support at Rs 283,585; a breach beneath this level may lead to a test of Rs 279,405. On the upside, resistance is observed at Rs 292,405, and a sustained movement above this threshold may pave the way toward Rs 297,045.