Silver experienced a notable increase of 4.79%, concluding at Rs 252,944. This rise was bolstered by escalating geopolitical tensions and comparatively low trading volumes in Asia, which intensified the price movement. The rally also gained momentum from the mixed signals in the latest FOMC minutes, revealing a division among policymakers regarding the trajectory of interest rates, with some cautioning that additional hikes could be necessary if inflation remains persistent.
In the fourth quarter of 2025, the U.S. economy experienced an annualized growth rate of 1.4%, a significant deceleration from the 4.4% recorded in the third quarter, falling short of projections. Consumer spending showed signs of moderation, as the core PCE index increased by 0.4% in December, highlighting ongoing inflationary pressures. On the physical side, the visibility of supply tightness is increasing.
Silver inventories on the Shanghai Futures Exchange have decreased to approximately 350 tonnes, marking the lowest point since 2015, and reflecting a decline of over 88% from the peak observed in 2021. This significant decline underscores the increasing pressure on stocks held in exchanges. At the conclusion of January, vault holdings in London were recorded at 27,729 tonnes, reflecting a minor decrease compared to the previous month.
From a technical perspective, the market is experiencing new buying activity, evidenced by a 2.71% increase in open interest in conjunction with a significant price appreciation. Immediate support is identified at Rs 244,535, with additional support at Rs 236,125. Resistance is established at Rs 258,065, and a sustained movement above this threshold may pave the way toward Rs 263,185.