Silver prices experienced a notable decline of 3.04%, closing at Rs 291,102. This movement reflects investor sentiment as they concentrated on the outcomes of the two-day summit between US President Donald Trump and Chinese President Xi Jinping, alongside their responses to new economic and inflation-related data emerging from the United States. Market sentiment experienced a modest uptick following the consensus between both leaders on the necessity of keeping the Strait of Hormuz open to facilitate uninterrupted global energy flows. The summit underscored advancements in trade-related collaboration, notably China’s pledge to enhance its acquisitions of U.S. agricultural goods and the dialogues concerning controls on fentanyl precursors.
Silver faced increased pressure following remarks from Minneapolis Federal Reserve President Neel Kashkari, who expressed ongoing concerns regarding persistent inflation and indicated a willingness to consider future interest rate hikes should inflation continue to be high. Kashkari underscored the Federal Reserve’s unwavering dedication to curbing inflation, particularly in light of the Iran conflict, which has exacerbated existing price pressures. His remarks bolstered market anticipations that US interest rates could remain elevated for an extended period, thereby diminishing the appeal of non-yielding assets like precious metals. Notwithstanding the recent decline, the overall perspective for silver continues to be bolstered by inherent supply constraints and a resurgence in investment interest.
HSBC has adjusted its silver price projections to $75 per ounce for 2026 and $68 for 2027, attributing this revision to the influence of a depreciating U.S. dollar and an increase in demand for coins and bars. In March, China’s silver imports reached an unprecedented 836 metric tons, nearly tripling the long-term seasonal average. This surge was propelled by robust retail purchasing and stockpiling activities within the photovoltaic sector in anticipation of forthcoming export tax adjustments. India has increased import duties on silver to 15% from 6%, a measure intended to curtail foreign purchases and alleviate the strain on foreign exchange reserves.
From a technical perspective, the market is experiencing renewed selling pressure, evidenced by a 5.54% increase in open interest, which has settled at 8,355, alongside a price decline of Rs 9,136. Silver is currently finding support at Rs 285,600; a decline below this level could lead to a test of Rs 280,105. Conversely, resistance is identified at Rs 297,795, with a breakthrough potentially pushing prices to Rs 304,495.