Silver prices experienced a notable increase, closing with a gain of 2.26% at Rs 334,699, driven by strong demand, ongoing supply constraints, and continuous difficulties in enhancing refining capacity. Investor appetite for real assets has increased as the U.S. dollar has weakened, influenced by evolving U.S.–Europe geopolitical dynamics regarding Greenland and apprehensions that Europe might utilize its substantial holdings of U.S. assets.
Anticipations regarding the Federal Reserve’s decision to maintain interest rates at their current levels in the upcoming week, coupled with market expectations for two potential rate reductions later this year, have provided additional support for precious metals. Speculation surrounding President Trump’s potential appointment of a more dovish Federal Reserve chair has contributed to a reduction in easing expectations. The rally was bolstered by a significant short squeeze, robust retail involvement, and the tightening of export controls by China.
Macroeconomic indicators continued to show strength, as U.S. GDP grew at a robust annualized rate of 4.4% in the third quarter of 2025, and jobless claims remained significantly lower than anticipated, reflecting ongoing economic resilience. On the supply side, Chinese inventories have reached decade lows, prompting renewed concerns regarding global liquidity, even in the context of rising exports and increased holdings in London vaults. Commerzbank and HSBC have adjusted their long-term price forecasts upward, attributing this shift to safe-haven demand, a depreciating dollar, and persistent structural supply-demand imbalances, while also cautioning about the potential for heightened volatility.
Silver is currently experiencing renewed buying interest, evidenced by a 2.02% increase in open interest, coinciding with a price rise of Rs 7,410. Immediate support is identified at Rs 328,165; a breach below this level may challenge Rs 321,620. Resistance is identified at Rs 340,590, and a significant breakthrough above this threshold could propel prices toward Rs 346,470.