Silver prices experienced a slight increase of 0.07%, concluding at Rs 235,873. This uptick is attributed to persistent supply constraints, strong industrial demand, and anticipations of additional interest rate reductions in the United States. The metal has surpassed several historic milestones this year, supported by its designation as a critical mineral in the US, consistently low inventories, and increasing industrial and investment demand.
Increased geopolitical tensions provided additional backing, as the US indicated possible further measures against Iran and revealed an operation aimed at a drug-related establishment in Venezuela. In the face of intermittent volatility, silver is poised to achieve an impressive annual gain of approximately 180%, representing one of its most robust performances since 1979. The rally has been supported by constrained physical supply, ongoing ETF inflows, central bank purchases, and three US rate reductions, with markets progressively factoring in further monetary easing in 2026.
Nonetheless, the significant rise in margin requirements by CME Group for March 2026 silver futures underscores apprehensions regarding speculative excess in the wake of consecutive record highs. On the supply side, Chinese silver stockpiles have fallen to their lowest levels in a decade following record exports surpassing 660 tonnes in October, while liquidity conditions in London continue to be constrained.
From a technical perspective, the market is experiencing short covering, as evidenced by a 0.74% decrease in open interest to 13,147, despite a price increase of Rs 172. Silver currently exhibits immediate support at Rs 233,510, with potential further decline towards Rs 231,150. Resistance is positioned at Rs 238,570, and a sustained breakout above this threshold may drive prices toward Rs 241,270.