Silver prices experienced a notable increase of 3.7%, concluding at Rs 2,39,918, a movement attributed to a decrease in geopolitical tensions that positively influenced market sentiment. The rally was driven by a temporary ceasefire agreement between the U.S. and Iran, with U.S. President Donald Trump confirming a two-week pause in military action and suggesting advancements in negotiations.
Iran’s commitment to keeping the Strait of Hormuz open has mitigated concerns about possible disruptions in supply and the inflationary pressures associated with energy prices. With the stabilization of oil prices, investors are starting to reassess their projections concerning interest rates for 2026. The Federal Reserve is presently anticipated to uphold interest rates, thereby easing earlier apprehensions about potential hikes.
The ongoing improvement of the U.S. labor market, highlighted by rising private-sector employment, continues to reflect a strong economic foundation. On the supply side, silver holdings in London vaults decreased by 2.4% to 27,065 tonnes, indicating a contraction in physical availability, which further supported prices.
From a technical perspective, the market is witnessing short covering, as evidenced by a decrease in open interest alongside rising prices, indicating the unwinding of bearish positions. Immediate support is observed at Rs 2,36,510, with a possibility of further decline towards Rs 2,33,095. On the upside, resistance is positioned at Rs 2,45,000, and a movement beyond this threshold could propel prices towards Rs 2,50,075.