Silver prices experienced an uptick, increasing by 1.08% to close at Rs 243,501, buoyed by a more favorable sentiment as optimism rises regarding a potential easing of tensions in the Middle East conflict. Donald Trump suggested that U.S. military engagement might conclude in a matter of weeks, while Iran expressed a readiness to cease hostilities contingent upon specific conditions. This has contributed to the stabilization of market sentiment, although uncertainty continues to persist.
On the macro front, expectations persist that the Federal Reserve will maintain interest rates at current levels through 2026, thereby constraining significant upward movement in precious metals for the time being. Jerome Powell emphasized that long-term inflation expectations continue to exhibit stability, even in the face of geopolitical uncertainties. Recent U.S. economic data presented a blend of indicators, featuring robust retail sales alongside moderate job growth, which maintains a balanced perspective on the overall outlook.
The short-term trajectory for silver is significantly influenced by the developments in the geopolitical landscape and the forthcoming U.S. employment figures. From a supply perspective, silver holdings in London vaults decreased by 2.4% to 27,065 tonnes at the end of February, suggesting a contraction in physical availability, which may provide fundamental support to prices.
From a technical perspective, the market is exhibiting renewed buying interest, as evidenced by a modest increase in open interest of 0.03%, reaching 5,784 lots. Immediate support is observed at Rs 240,010, with additional downside potential toward Rs 236,515. On the upside, resistance is positioned at Rs 245,490, and a breakout may propel prices towards Rs 247,475.