Silver experienced a decline of 3.84%, closing at Rs 2,52,548, as traders chose to realize profits in anticipation of critical U.S. economic data that may impact the Federal Reserve’s forthcoming decisions regarding interest rates. Sentiment continued to be cautious following comments from White House economic adviser Kevin Hassett, who suggested that job growth could decelerate in the upcoming months as a result of a declining population trend.
While markets continue to incorporate the possibility of at least two rate cuts later this year, the Federal Reserve is largely anticipated to maintain the current rates in March. U.S. Treasury Secretary Scott Bessent attributed the recent sharp volatility in metals to speculative activity from Chinese traders, describing the rally as a potential blowoff phase. Investors are currently anticipating postponed U.S. employment and inflation statistics to gain a more definitive understanding of policy direction.
Tightening physical conditions on the supply side are garnering attention. Silver inventories on the Shanghai Futures Exchange have decreased to approximately 350 tonnes, approaching a decade low and significantly lower than their 2021 peak of over 3,000 tonnes. At the conclusion of January, London vault holdings registered at 27,729 tonnes, reflecting a slight decrease compared to the previous month.
The market is currently experiencing long liquidation, evidenced by a 1.33% decline in open interest. Immediate support is observed at Rs 2,47,175, with additional downside potential towards Rs 2,41,810. Resistance is positioned at Rs 2,60,830, and a sustained movement above this threshold may propel prices toward Rs 2,69,120.