Silver prices continued their significant ascent, closing with a 4.32% increase at Rs 323,672, bolstered by robust safe-haven demand and its classification as a vital mineral in the United States. The intensifying tensions between the US and Europe, spurred by President Donald Trump’s revived interest in acquiring Greenland and the imposition of tariffs on eight European countries, have heightened demand for precious metals. Market participants observed cautions indicating that Europe’s substantial holdings of U.S. financial assets might serve as leverage in an escalating trade conflict, thereby heightening risk aversion. At its core, silver remains advantageous due to inherent supply shortages and constrained physical accessibility.
London has faced a series of market squeezes throughout the past year, as Chinese stockpiles have dwindled to levels not seen in a decade following unprecedented exports exceeding 660 tonnes in October, aimed at alleviating international shortages. At the conclusion of December 2025, silver reserves in London vaults experienced a month-on-month increase of 2.3%, reaching a total of 27,818 tonnes, with a valuation of $64.4 billion, highlighting ongoing investor interest.
Major banks maintain a positive stance on the medium-term outlook: Commerzbank projects silver to reach $95 per ounce by the end of 2026, while HSBC has significantly increased its forecasts, attributing this to a weaker dollar and persistent deficits. However, it has also noted that prices could experience volatility and be susceptible to corrections.
From a technical perspective, the market is experiencing new buying activity, as evidenced by a 2.28% increase in open interest along with a price rise of Rs 13,397. Silver exhibits support at Rs 310,780, and a breach beneath this level could initiate a decline toward Rs 297,890. On the upside, resistance is observed at Rs 332,280, and a sustained movement above this level could potentially test Rs 340,890.