Silver prices continued their upward trajectory, closing with an increase of 2.76% at Rs 327,289, bolstered by persistent geopolitical uncertainties, a depreciating U.S. dollar, and the positive influence from gold markets. However, the potential for gains was somewhat moderated following U.S. President Donald Trump’s retreat from suggested tariff threats against Europe and the announcement of a framework agreement with NATO regarding Greenland, which alleviated immediate trade-related tensions and diminished some of the allure of safe-haven assets. Macroeconomic data from the U.S. continued to provide a supportive yet mixed environment for precious metals.
The U.S. economy expanded at an impressive annualized rate of 4.4% in the third quarter of 2025, marking the most vigorous growth since the third quarter of 2023, propelled by substantial consumer expenditure, increased exports, and elevated government spending. Meanwhile, initial jobless claims increased slightly to 200,000, staying significantly below expectations and suggesting ongoing strength in the labor market. From a fundamentals perspective, global banks maintain a positive medium-term outlook on silver.
Commerzbank anticipates silver to reach $95 per ounce by the end of 2026, whereas HSBC has significantly increased its 2026 projection to $68.25 per ounce, attributing this adjustment to a weaker dollar, slight supply-demand imbalances, and ongoing demand from institutional investors. Supply-side risks remain evident as Chinese inventories have decreased to levels not seen in a decade, with substantial quantities dispatched to London, thereby maintaining tight global liquidity even in the face of increasing vault holdings.
From a technical perspective, the market is experiencing short covering, as evidenced by a 0.35% decline in open interest to 9,745, while prices have increased by Rs 8,797. Silver finds support at Rs 310,640; a decline beneath this level may challenge Rs 293,995. On the upside, resistance is observed at Rs 337,330, with a movement above this level potentially leading to Rs 347,375.