Silver prices experienced a notable increase, concluding at Rs 3,85,366, reflecting an 8.16% rise, as investors flocked to safe-haven assets in response to a significant drop in the U.S. dollar. The rally was further amplified by a historic short squeeze, aggressive retail participation, and China’s tightening export controls, which have constrained near-term availability. U.S. President Donald Trump’s comments indicating a preference for a weaker dollar—currently at a four-year low—bolstered anticipations of a policy approach that favors export competitiveness.
Persistent policy ambiguity in Washington, characterized by tariff threats and critiques of the Federal Reserve’s autonomy, has sustained demand for precious metals. In China, there was a notable increase in retail enthusiasm, as a pure-play silver fund halted trading following a significant rise in its premium above net asset value. Robust demand has led manufacturers to redirect production from jewelry to 1 kg silver bars.
In the interim, China’s silver inventories have reached their lowest levels in a decade, coinciding with unprecedented exports exceeding 660 tonnes in October, thereby amplifying global supply apprehensions. London vault holdings increased by 2.3% month-over-month to 27,818 tonnes, indicative of metal inflows in the context of constrained liquidity and high borrowing costs. Citi has adopted a more optimistic stance, increasing its 0–3 month silver forecast to $150 per ounce.
From a technical perspective, the market is experiencing short covering, evidenced by a 10.36% decline in open interest as prices surged to Rs 29,087. Support is identified at Rs 3,70,805, beneath which prices could potentially decline to Rs 3,56,245. Conversely, resistance is noted at Rs 3,93,940, followed by Rs 4,02,515.