Silver prices experienced a notable decline of 1.75%, closing at Rs 233,200. This movement can be attributed to profit booking and long liquidation, even in the context of ongoing geopolitical tensions. Concerns regarding the impasse in U.S.–Iran negotiations and the ongoing closure of the Strait of Hormuz have intensified inflation apprehensions stemming from possible disruptions in energy supply; however, these factors did not manage to maintain bullish momentum.
On the macro front, U.S. housing starts surged 10.8% to an annualised rate of 1.502 million in March 2026, indicating resilience in construction activity. In contrast, building permits dropped 10.8% to 1.372 million, reflecting caution in future project pipelines. Additional pressure emerged from broader economic indicators, as the U.S. goods deficit expanded to $87.9 billion, despite a 2.5% increase in exports, reaching a record $211.5 billion, primarily driven by industrial supplies.
Nonetheless, robust physical demand trends, especially emanating from China, offered foundational support. In March, China’s silver imports reached an unprecedented 836 metric tonnes, nearly tripling the 10-year average. This surge was propelled by robust retail investment demand and stockpiling activities by photovoltaic manufacturers in anticipation of forthcoming policy adjustments. Heightened domestic prices in China have similarly stimulated global arbitrage movements into the area through Hong Kong. From a supply perspective, silver holdings in London vaults rose by 1.6% to 27,487 tonnes, reflecting consistent institutional accumulation.
From a technical perspective, the market is experiencing long liquidation, as evidenced by a 40.42% decline in open interest to 1,603, indicating the exit of bullish positions. Silver is presently encountering support at Rs 230,530, with additional downside risk toward Rs 227,865 should this level be breached. On the upside, resistance is observed at Rs 237,330, and a sustained movement above this level could propel prices toward Rs 241,465 in the near term.