Silver prices experienced a modest increase of 0.09%, concluding at Rs 2,65,560, bolstered by safe-haven demand amid escalating tensions in the Middle East. The ongoing U.S.–Israel conflict with Iran has now reached its fifth day, heightening concerns regarding a potential extended regional crisis. Reports indicated that Israel targeted a building where clerics convened to elect a new Supreme Leader. U.S. President Donald Trump cautioned that the ongoing conflict might result in shifts in leadership within Iran, emphasizing the prevailing uncertainty associated with the situation. Meanwhile, the geopolitical landscape has further complicated the economic forecast.
Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, observed that the conflict in Iran has heightened uncertainty regarding the U.S. economy and forthcoming interest-rate decisions. Economic data from the U.S. showed private businesses added 63,000 jobs in February, the strongest increase since July and above market expectations, suggesting resilience in the labour market.
On the supply side, physical silver markets exhibit indications of tightening. Inventories on the Shanghai Futures Exchange have decreased to approximately 350 tonnes, marking the lowest level since 2015 and a significant decline from the peak of over 3,000 tonnes in 2021. Concurrently, silver holdings in London vaults reached 27,729 tonnes at the conclusion of January, reflecting a modest decline from the prior month.
From a technical perspective, the market is experiencing short covering, as evidenced by a 0.83% decrease in open interest to 6,471 lots, coinciding with a price increase of Rs 242. Silver exhibits immediate support at Rs 2,61,065, with additional support at Rs 2,56,575. Resistance is identified at Rs 2,73,280, and a breach of this level could lead to prices advancing toward Rs 2,81,005.