Silver prices experienced a significant increase, closing 3.67% higher at Rs 227,954, as geopolitical tensions appeared to ease temporarily following Donald Trump’s decision to postpone action on Iran and extend the negotiation deadline to April 6. The action alleviated market apprehensions, particularly given the minimal disturbances noted in the Strait of Hormuz. Nonetheless, uncertainty persists as Iran has dismissed the U.S. proposal, thereby maintaining the overall risk landscape.
The interest rate outlook in the U.S. continues to exhibit a degree of uncertainty. Comments from Federal Reserve officials underscored that the path of inflation—significantly shaped by the conflict in the Middle East—will be crucial in assessing whether interest rates will rise or ultimately decrease. This prevailing uncertainty continues to shape sentiment surrounding precious metals.
On the demand side, silver is experiencing robust fundamental backing from China, with imports reaching an eight-year peak, exceeding 790 tonnes in the initial two months of 2026. Strong industrial and investment demand has constrained supply, as London vault holdings fell by 2.4% to 27,065 tonnes, indicating continued drawdowns.
From a technical perspective, the market is experiencing short covering, as open interest decreased by 3.35% to 5,664 lots, while prices increased by Rs 8,080. Immediate support is identified at Rs 221,515, with a breach below this level possibly leading to a test of Rs 215,075. On the upside, resistance is positioned at Rs 234,090, and a sustained move above this level could pave the way toward Rs 240,225.