Silver prices declined by 1.12%, closing at Rs 2,56,532. This movement was influenced by escalating energy prices, which have heightened inflation worries and diminished anticipations of interest rate reductions by the U.S. Federal Reserve and other prominent central banks. The metal experienced a decline in its safe-haven appeal following reports indicating that the United States might spearhead a multinational coalition to escort vessels through the Strait of Hormuz, which could alleviate tensions surrounding one of the globe’s most vital energy corridors. U.S.
President Donald Trump has called on allied nations, including the UK, France, China, and Japan, to support the securing of the passage, while European Union foreign ministers are engaged in discussions regarding a potential naval response. Economic data from the United States exerted further pressure on precious metals. Manufacturing output experienced a month-on-month increase of 0.2% in February 2026, surpassing market expectations of 0.1%, following a 0.8% rise in January.
In a similar vein, industrial production rose by 0.2%, exceeding expectations. The robust data bolsters anticipations that the Federal Reserve will uphold a prudent monetary policy approach during its meeting this week. Silver inventories on the Shanghai Futures Exchange have fallen to approximately 350 tonnes, marking the lowest level since 2015, which underscores a contraction in physical supplies.
From a technical perspective, the market is experiencing long liquidation, as open interest decreased by 0.8% to 5,842 lots, accompanied by a price decline of Rs 2,903. Immediate support is identified at Rs 2,49,000, and a breach of this threshold may lead to a decline towards Rs 2,41,470. On the upside, resistance is likely near Rs 2,61,920, with a move above this level potentially testing Rs 2,67,310.