Silver prices experienced a decline of 0.87%, concluding at Rs 2,31,348, as market participants adopted a cautious stance in anticipation of U.S. President Donald Trump’s impending deadline concerning Iran. In the face of rising tensions, characterized by reported assaults on critical Iranian infrastructure and warnings of wider retaliation, silver did not capitalize on its status as a safe-haven asset.
Indeed, prices remain approximately 20% lower than their pre-conflict levels, influenced by a robust U.S. dollar and diminished anticipations regarding Federal Reserve rate reductions. The latest macroeconomic data from the United States has intensified the existing pressure. Durable goods orders have experienced a decline for the third consecutive month, whereas labour market indicators continue to show strength, highlighted by a significant increase in private-sector hiring.
The current mixed data landscape has solidified the perspective that interest rates could remain high, thereby constraining potential gains in precious metals. At the end of February, silver holdings in London vaults totaled 27,065 tonnes, reflecting a 2.4% decrease from the previous month, which suggests a contraction in physical availability.
The market is currently experiencing long liquidation, as evidenced by the decline in open interest in conjunction with falling prices. Immediate support is identified at Rs 2,25,465, and a breach below this level may lead to a decline towards Rs 2,19,580. On the upside, resistance is positioned at Rs 2,36,390, with a potential advance towards Rs 2,41,430 should this threshold be surpassed.