Silver prices experienced a significant increase, closing at Rs 262,620, reflecting a rise of 5.09%. This movement was bolstered by a depreciating U.S. dollar and heightened anticipations of monetary easing from the Federal Reserve. Investor sentiment continued to exhibit optimism in anticipation of the postponed U.S. non-farm payrolls report, which is now regarded as a crucial determinant for the forthcoming adjustments in interest rates.
San Francisco Fed President Mary Daly suggested that one or two further rate cuts might be necessary to tackle the weakness in the labor market, as markets are presently anticipating a minimum of two 25-basis-point reductions in 2026, with the initial cut projected for around June. In addition, U.S. Treasury Secretary Scott Bessent minimized the probability of a swift reduction in the Fed’s balance sheet. The global silver market is currently experiencing renewed supply constraints. Chinese stockpiles have declined to their lowest levels in almost ten years, as record exports surpassed 660 tons in October to alleviate a significant price pressure.
Inventories at Shanghai-linked warehouses and exchange volumes have experienced a significant decline, underscoring concerns regarding liquidity. In the face of unprecedented inflows into London, the cost of borrowing continues to be high. At the conclusion of January 2026, silver reserves 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 new buying activity, as evidenced by a 1.21% increase in open interest to 6,301, coupled with a notable price increase of Rs 12,728. Silver currently finds itself with immediate support at Rs 254,115; a breach of this level may lead to a decline in prices toward Rs 245,615. Resistance is identified at Rs 268,545, and a significant breakthrough above this threshold could drive prices towards Rs 274,475.