Silver experienced a notable increase, rising by 3.42% to close at Rs 257,142, as market sentiment strengthened after the assurance that the Strait of Hormuz will remain accessible throughout the temporary ceasefire. The significant decline in crude oil prices—decreasing by over 10%—contributed to alleviating short-term inflation worries, thereby providing support for precious metals.
Optimism regarding a potential long-term agreement between the US and Iran contributed to the overall positive sentiment, although geopolitical risks remain as the US continues its naval posture. From a macro perspective, the signals appeared to be mixed. In March, US manufacturing output experienced a decline of 0.1%, falling short of forecasts and suggesting a potential deceleration in industrial activity.
Concurrently, jobless claims experienced a significant decline to 207K, suggesting that the labor market continues to exhibit resilience. This combination indicates a stable yet somewhat uneven economic environment. Commerzbank has contributed to the optimistic perspective by forecasting that silver prices may attain $90 per ounce by the end of the year, while also anticipating a slowdown in the rate of increases. Meanwhile, London vault holdings increased by 1.6% to 27,487 tonnes, indicating consistent institutional demand.
From a technical perspective, the market is experiencing short covering, evidenced by a 2.9% decrease in open interest alongside a rise in prices. Immediate support is identified at Rs 249,840, with a more substantial floor at Rs 242,545. Resistance is observed at Rs 263,090, and a persistent breakout beyond this threshold may drive prices toward Rs 269,045.