Silver prices experienced a notable decline of 1.24%, closing at Rs 2,48,628, as a more optimistic outlook regarding a possible resolution to the US-Iran conflict diminished the demand for safe-haven assets. Reports indicating a potential extension of the ceasefire to facilitate additional negotiations have alleviated market apprehensions, resulting in a decline in bullion prices.
On the macro front, remarks from Alberto Musalem suggested that prevailing interest rate levels are expected to stay stable for the foreseeable future, notwithstanding persistent supply-side inflation risks. The U.S. economic data revealed a nuanced landscape—manufacturing output saw an unexpected decline in March, whereas jobless claims fell to 207,000, indicating ongoing strength in the labor market.
The interplay of these factors has maintained a stable outlook on monetary policy, thereby constraining significant directional shifts in silver prices. From a supply perspective, global inventories are currently at a comfortable level. Holdings in London vaults increased marginally to 27,487 tonnes at the conclusion of March, indicating sufficient physical availability and limiting any significant upward movement.
From a technical perspective, the market is experiencing new selling pressure, as evidenced by a 2.24% increase in open interest, which suggests the establishment of short positions. Silver currently finds itself with immediate support at Rs 2,45,935. A breach of this level may result in additional declines toward Rs 2,43,240. On the upside, resistance is observed at Rs 2,53,530, and a sustained move above this level could propel prices toward Rs 2,58,430.