Silver prices experienced a notable decline of 2.76%, concluding at Rs 2,41,513, as ongoing geopolitical tensions and escalating energy prices exerted pressure on market sentiment. The persistent blockade of the Strait of Hormuz, coupled with rising tensions between the U.S. and Iran, has sustained elevated crude oil prices. This situation has intensified inflation worries and heightened anticipations of stricter monetary policy—elements that generally exert downward pressure on precious metals such as silver.
In light of the geopolitical context, the macroeconomic indicators from the U.S. continued to bolster a more optimistic economic perspective. Jobless claims experienced a modest increase yet remained in line with projections, whereas manufacturing activity demonstrated significant robustness, as evidenced by the PMI reaching its peak in almost two years. The robustness of economic indicators has diminished the attractiveness of silver as a refuge for investors. On the demand side, China persists in offering fundamental support.
In March, imports reached an unprecedented 836 metric tonnes, propelled by robust retail investment demand and proactive stockpiling by the solar sector in anticipation of forthcoming tax changes. Heightened domestic premiums stimulated international capital inflows into China, with Hong Kong serving as a crucial transit point. Meanwhile, London vault holdings increased by 1.6% to 27,487 tonnes, reflecting a stable stance among institutional investors.
From a technical perspective, the market is experiencing long liquidation, as evidenced by a 2.71% decline in open interest to 5,354. Immediate support is identified at Rs 2,38,420, with potential further decline to Rs 2,35,325 should selling pressure continue. On the upside, resistance is positioned at Rs 2,45,790, and a movement above this threshold could initiate a recovery toward Rs 2,50,065.