Silver experienced a notable recovery, finishing 5.21% higher at Rs 240,892, as market participants responded to persistent geopolitical tensions and constricting physical supply conditions. The metal remains bolstered by apprehensions regarding interruptions in critical shipping lanes, especially given the increasing threats surrounding the Red Sea and the Strait of Hormuz.
While Donald Trump suggested advancements in peace negotiations, his caution regarding possible escalation should the Strait remain obstructed has contributed to fluctuating sentiment. Simultaneously, precious metals have faced downward pressure this month as a result of increasing oil prices, which have heightened inflation worries and diminished anticipations of interest rate reductions. Jerome Powell asserted that long-term inflation expectations are stable, although uncertainty associated with the ongoing conflict continues to loom. Market participants are currently focused on the forthcoming U.S. jobs data, which may influence the short-term perspective for silver.
At the end of February 2026, silver holdings in London vaults totaled 27,065 tonnes, reflecting a 2.4% decrease from the previous month. This decline suggests a tightening in availability, which could potentially sustain upward pressure on prices. From a technical perspective, the market indicates renewed buying interest, as open interest has increased by 1.3% to 5,782 lots. Silver exhibits immediate support at Rs 236,610, with potential further decline towards Rs 232,325. On the upside, resistance is observed at Rs 243,400, and a breakout could propel prices toward Rs 245,905.