Silver experienced a significant increase of 6.26% yesterday, closing at Rs 278,311, driven by robust investor demand and ongoing worries regarding constrained global supplies that have bolstered the market. Bullish sentiment was further bolstered by escalating geopolitical tensions following US President Donald Trump’s dismissal of Iran’s response to a US-supported peace proposal, diminishing prospects for a swift resolution to the protracted 10-week conflict in the Middle East. The prevailing uncertainty has heightened safe-haven buying interest in precious metals, with silver additionally gaining from a robust outlook for industrial demand.
The latest outlook from the Silver Institute indicates that the global silver market is projected to continue experiencing a structural deficit for the sixth consecutive year, even with a minor easing in the growth of industrial demand. The persistent mismatch between supply and demand is bolstering anticipations that a temporary price adjustment could entice renewed buying activity from investors. Global demand for physical silver investment is anticipated to increase by nearly 20% this year, driven by a resurgence of investment interest in key markets following the robust price rally observed last year. Market participants are closely observing trends in industrial activity in the US and China, especially within sectors like solar energy, electric vehicles, and electronics manufacturing, which continue to be significant contributors to silver consumption.
In March, China experienced a remarkable increase in silver imports, driven by robust retail investment demand and significant stockpiling activities by photovoltaic manufacturers in anticipation of the impending cancellation of the export tax rebate on April 1. Chinese customs data indicates that silver imports amounted to approximately 836 metric tons in March, nearly tripling the historical average for that month. Heightened domestic silver premiums in China prompted global traders to reroute shipments into the Chinese market via Hong Kong. As of the end of April 2026, silver holdings in London vaults were recorded at 27,454 tonnes, reflecting a minor decrease of 0.1% from the preceding month, which is approximately equivalent to 915,122 silver bars.
From a technical perspective, the market is experiencing renewed buying activity, evidenced by a 6.48% increase in open interest, which has settled at 7,302, alongside a price gain of Rs 16,389. Silver is currently finding support at Rs 266,385; a decline below this level could lead to a test of Rs 254,460. Conversely, resistance is identified at Rs 284,835, with a breakthrough potentially pushing prices towards Rs 291,360.