Silver experienced a decline of 3.22%, closing at Rs 259,669, as investor sentiment shifted towards caution in light of the upcoming U.S.–Iran nuclear discussions and increasing anticipation that U.S. interest rates could remain elevated for an extended period. Statements from U.S. officials regarding the possibility of increasing tariffs to 15% or higher have contributed to uncertainty, while the Federal Reserve is largely anticipated to maintain current interest rates in the face of ongoing inflation worries.
The labor market data in the United States continues to exhibit a degree of resilience. Initial jobless claims increased slightly to 212,000, remaining beneath expectations, whereas continuing claims decreased to 1.83 million, representing some of the lowest figures in the past ten months. Federal Reserve officials have expressed minimal urgency regarding policy adjustments, despite market expectations for three rate cuts within the year.
On the physical side, supply dynamics are becoming increasingly constrained. Silver inventories on the Shanghai Futures Exchange have declined to approximately 350 tonnes, marking the lowest level in nearly a decade and a significant decrease from their peak in 2021. At the conclusion of January, silver holdings in London vaults were recorded at 27,729 tonnes, reflecting a slight decrease compared to the previous month.
From a technical perspective, the market is experiencing significant long liquidation, as evidenced by a 33.9% decline in open interest, bringing it down to 3,366. Immediate support is identified at Rs 254,290 and Rs 248,915, whereas resistance is positioned at Rs 265,920. A recovery above this threshold may drive prices towards Rs 272,175.