Silver prices experienced a decline in the previous session, closing 1.27% lower at Rs 2,62,191, influenced by the strength of the U.S. dollar, which exerted pressure on precious metals. The dollar index rose to approximately 99.1, bolstered by increased geopolitical tensions stemming from the intensifying conflict with Iran. The ongoing military campaign by the U.S. and Israel against Iran has now reached its sixth day, prompting apprehensions regarding a potential extended conflict and maintaining a cautious stance among global markets.
Reports indicate that a U.S. submarine has sunk an Iranian warship off the coast of Sri Lanka, contributing to heightened tensions. Additionally, conflicting information regarding potential peace talks between Iranian operatives and the U.S. has introduced further uncertainty into the situation. Simultaneously, the U.S. administration has confirmed that a 15% global tariff, as announced by President Donald Trump, is anticipated to take effect later this week. The global physical silver market is exhibiting indications of a tightening supply side.
Silver inventories on the Shanghai Futures Exchange have declined to approximately 350 tonnes, marking their lowest point in nearly ten years and significantly down from the more than 3,000 tonnes noted in early 2021. Data indicated that exchange inventories stood at 318.5 tonnes as of February 9, 2026, highlighting a notable reduction in China’s accessible stocks. At the conclusion of January, London vault holdings registered at 27,729 tonnes, reflecting a minor decline compared to the preceding month.
From a technical perspective, the market is experiencing long liquidation, as evidenced by a 2.77% decline in open interest to 6,349 lots, accompanied by a price decrease of Rs 3,369. Silver is presently encountering support at Rs 2,55,370, with the subsequent downside target positioned at Rs 2,48,550. On the upside, resistance is observed at Rs 2,71,630, and a breakout above this level may propel prices toward Rs 2,81,070.