Silver prices experienced a notable increase in the previous session, closing 4% higher at Rs 277,850, primarily bolstered by a depreciating U.S. dollar. The dollar experienced a decline following Donald Trump’s suggestion that the current military engagement with Iran might wrap up earlier than previously anticipated. He also indicated possible intentions to lift oil-related sanctions and utilize the United States Navy to escort tankers through the Strait of Hormuz, a strategy designed to stabilize energy markets and alleviate geopolitical tensions.
Recent economic data from the United States has also lent some support to the broader metals complex. In February, existing home sales experienced a 1.7% increase, reaching an annualised rate of 4.09 million, surpassing expectations. Concurrently, housing inventory saw a 2.4% rise to 1.29 million units, which corresponds to 3.8 months of supply.
In the interim, information from the ADP Research Institute indicated that U.S. private employers contributed an average of 15,500 jobs weekly over the four-week period concluding on February 21, marking the most rapid rate of job expansion since late November 2025. The physical silver market is experiencing a tightening of supply dynamics. Inventories on the Shanghai Futures Exchange have decreased to approximately 350 tonnes, marking the lowest point since 2015, which underscores notable reductions in stocks held by the exchange.
From a technical perspective, the market is experiencing new buying activity, as indicated by a 0.13% increase in open interest to 6,030, alongside a price increase of Rs 10,690. Silver currently exhibits immediate support at Rs 272,745, while further declines may test the level of Rs 267,640. On the upside, resistance is observed at Rs 281,210, and a breach of this level may propel prices toward Rs 284,570.