Silver prices experienced a notable recovery, closing 1.24% higher at Rs 2,91,577, bolstered by diminishing inflation worries and ongoing macroeconomic uncertainty. Market sentiment showed signs of improvement following U.S. President Donald Trump’s decision to avoid the immediate imposition of tariffs on critical mineral imports. Instead, he chose to pursue negotiations aimed at securing supply chains, even as the potential for future restrictions lingers.
Safe-haven demand experienced a slight moderation as geopolitical tensions subsided, following reports indicating a cessation of executions of protesters in Iran, which alleviated concerns regarding imminent military escalation. Recent U.S. economic data exerted minimal influence on Federal Reserve expectations, while apprehensions regarding central bank independence also diminished.
Fundamentally, silver continues to be underpinned by constrained inventory dynamics, even in the face of certain demand challenges. By the end of December 2025, silver holdings in London vaults experienced a month-on-month increase of 2.3%, reaching a total of 27,818 tonnes, which underscores robust institutional positioning. Outlook projections remain optimistic, with Commerzbank anticipating silver to reach $95 per ounce by the end of 2026, while HSBC has adjusted its 2026 forecast to $68.25 per ounce, attributing this to a weaker dollar and slight supply-demand imbalances, although cautioning about potential volatility.
From a technical perspective, the market is experiencing renewed buying activity, as evidenced by a 0.99% increase in open interest coupled with a significant rise in prices. Silver currently exhibits immediate support at Rs 2,81,650; a breach of this level may lead to a test of Rs 2,71,720. On the upside, resistance is identified at Rs 2,97,235, and a breakout could pave the way toward Rs 3,02,890.