Silver prices experienced a notable decrease of 3.11%, concluding at Rs 244,701, as market participants weighed the prospects of potential US-Iran negotiations against escalating geopolitical tensions. Comments from US President Donald Trump regarding potential military action following the ceasefire’s expiration introduced a degree of uncertainty. Concurrently, inflation concerns stemming from the ongoing conflict heightened expectations for a more stringent monetary policy, thereby exerting pressure on precious metals.
Robust US retail sales figures, which increased by 1.7% in March, have diminished the safe-haven allure of silver. Notwithstanding the decline in price, the fundamental demand trends continued to exhibit support. China’s silver imports reached a historic high of approximately 836 metric tonnes in March, nearly tripling the 10-year average.
This increase was propelled by robust retail investment interest, as investors sought silver as a more cost-effective substitute for gold, coupled with significant accumulation by the solar sector in anticipation of tax modifications. Increased domestic prices in China have also stimulated global shipments into the region. Meanwhile, London vault holdings increased by 1.6% to 27,487 tonnes, indicating stable institutional positioning.
From a technical perspective, the market is experiencing long liquidation, as evidenced by a 0.9% decline in open interest, bringing it down to 5,802. Silver currently finds itself with immediate support at Rs 240,970; a breach of this level may lead to a decline in prices towards Rs 237,245. Resistance is identified at Rs 250,195, with a prospective upward movement toward Rs 255,695 contingent upon surpassing this threshold.