Silver experienced a notable decline, closing down by 1.79% at Rs 252,545, as rising tensions in the Strait of Hormuz contributed to an increase in oil prices and renewed worries about inflation. The situation escalated following the U.S. Navy’s interception of an Iranian vessel, prompting Tehran to assert control over critical shipping routes, thereby heightening concerns regarding potential prolonged disruptions.
While diplomatic discussions in Pakistan could potentially restart, the prospects for a resolution remain ambiguous, leaving markets in a state of apprehension. On the macroeconomic front, U.S. economic data presented a blend of signals. Manufacturing output experienced a decline of 0.1% in March, falling short of expectations, whereas jobless claims decreased to 207K, suggesting a labor market that remains resilient.
This combination indicates stable economic conditions; however, persistent inflation risks remain, continuing to dampen sentiment for non-yielding assets such as silver. Meanwhile, holdings in London vaults increased by 1.6% to 27,487 tonnes, indicating a stable physical supply. Commerzbank holds a positive long-term perspective, anticipating that silver prices may ascend to $90 per ounce, albeit at a more measured rate.
From a technical standpoint, the market is experiencing renewed selling pressure, as evidenced by a 2.07% increase in open interest, reaching 5,854 contracts. Immediate support is identified at Rs 250,730, with a breach possibly leading to a test of Rs 248,915. On the upside, resistance is positioned at Rs 254,360, and a breakthrough above this level could propel prices toward Rs 256,175.