Silver prices experienced a significant decline, closing 3.18% lower at Rs 259,435, influenced by the strengthening of the U.S. dollar, which exerted considerable pressure on the precious metals market. The dollar index sustained its position above the 100 threshold, marking its peak since late November 2025, and is poised for a consecutive weekly increase. Investors have persistently shown a preference for the greenback as a safe-haven asset in light of rising tensions with Iran and the lack of a definitive route toward de-escalation.
The U.S. is perceived as being in a more advantageous position compared to numerous other economies, attributable to its enhanced energy independence. Markets responded to a new release of U.S. economic data. The PCE inflation report indicated that the annual inflation rate has decreased to 2.8%, whereas the fourth-quarter GDP growth has been significantly revised downward to 0.7%, a reduction from the previous estimate of 1.4%.
In light of the subdued growth projections, market participants continue to anticipate that the Federal Reserve will implement a singular interest rate reduction this year, probably in September. The forthcoming policy meeting scheduled for next week is anticipated to provide critical insights into the central bank’s perspective. At the end of February, silver holdings in London vaults were recorded at 27,065 tonnes, reflecting a decrease of 2.4% compared to the preceding month.
From a technical perspective, the market is experiencing long liquidation, as open interest decreased by 0.88% to 5,889 lots, accompanied by a price decline of Rs 8,527. Immediate support is identified at Rs 252,875, and a breach of this threshold may lead to a decline in prices towards Rs 246,320. On the upside, resistance appears to be positioned around Rs 267,585, and a persistent advance beyond this threshold could result in a challenge of Rs 275,740.