Silver experienced a notable increase, closing 4.9% higher at Rs 265,333, driven by a weaker economic outlook and renewed trade uncertainties that heightened demand for safe-haven assets. The rally ensued after a U.S. Supreme Court decision that opposed former President Donald Trump’s extensive tariffs, which exerted pressure on the greenback and enhanced the appeal of dollar-denominated metals to international purchasers.
Concurrently, inflation data introduced additional intricacies to the forecast. Core PCE increased by 0.4% in December, indicating that underlying inflation is exhibiting signs of strengthening once more, which may constrain the Federal Reserve’s capacity to lower interest rates. Recent FOMC minutes indicate that policymakers are experiencing divisions, with certain members expressing willingness to pursue additional tightening measures should inflation persist at elevated levels.
On the macro front, U.S. GDP expanded at a modest 1.4% annualised pace in Q4 2025, sharply lower than Q3’s 4.4%, as consumer spending slowed. The fundamentals of the physical market continue to exhibit supportive characteristics. Silver inventories on the Shanghai Futures Exchange have decreased to approximately 350 tonnes — the lowest level observed since 2015 — indicating a significant drop from the peak levels seen in 2021. At the end of January, London vault holdings were recorded at 27,729 tonnes, reflecting a slight decrease compared to the previous month.
The market exhibits signs of renewed purchasing activity, evidenced by a 3.82% increase in open interest. Immediate support is observed at Rs 260,615, with a potential breach extending toward Rs 255,900. Resistance is positioned at Rs 269,460, and a persistent upward movement may challenge Rs 273,590.