Silver declined by 1.73% to Rs 2,60,744, influenced by profit-taking activities and the strengthening of the U.S. dollar, which exerted downward pressure on prices. Market participants exhibited a degree of caution, as they awaited more definitive indications regarding U.S. tariff policy while also keeping a close watch on escalating tensions between Washington and Tehran in anticipation of the forthcoming nuclear discussions in Geneva. Robust U.S. labour data contributed to the prevailing mixed sentiment. Private employers exhibited a notable increase in hiring momentum in early February, achieving the most rapid pace since late November.
Simultaneously, remarks from Atlanta Fed President Raphael Bostic indicating the potential for persistently elevated unemployment levels as a result of AI integration introduced a longer-term economic perspective to policy anticipations. Markets are assessing the implications of the Supreme Court’s ruling to eliminate specific U.S. tariffs, while new proposals for increased levies continue to be considered.
On the physical side, supply tightness persists in providing fundamental support. Silver inventories on the Shanghai Futures Exchange have declined to approximately 350 tonnes, marking the lowest point in nearly ten years and representing a decrease of over 88% from the peak observed in 2021. London vault holdings experienced a slight decline month-on-month, suggesting a gradual reduction in global stocks.
From a technical perspective, the market is experiencing long liquidation, evidenced by a 21.93% decline in open interest. Immediate support is identified at Rs 2,53,450, with a breach below this level aiming for Rs 2,46,160. Resistance is positioned at Rs 2,68,080, with a potential upward movement that may challenge Rs 2,75,420.