Silver prices concluded the trading session with an increase of 1.31%, reaching Rs 261,922. This uptick was bolstered by diminishing worries regarding inflation and interest rates, fueled by a sense of optimism regarding a potential resolution to the Iran conflict. Market sentiment experienced an uptick following the release of robust US employment data, which bolstered confidence in the resilience of the American economy. Data indicated that US employment rose beyond expectations in April, with the unemployment rate holding steady at 4.3%, reflecting ongoing robustness in the labor market.
In the wake of the report, expectations for an additional Federal Reserve rate hike this year diminished, as indicated by the CME FedWatch tool, which revealed a drop in probability to approximately 14% from nearly 22% the previous day. Federal Reserve officials adopted a prudent stance concerning inflation. San Francisco Fed President Mary Daly reaffirmed the dedication to achieving the central bank’s 2% inflation target, emphasizing that the recent increase in energy prices has not yet impacted medium or long-term inflation expectations. In the interim, Chicago Fed President Austan Goolsbee cautioned that inflation has intensified since the onset of the Middle East conflict and is not progressing steadily towards the Fed’s target. Geopolitical tensions persisted as US and Iranian forces engaged once more in the Gulf region, while the UAE encountered fresh assaults.
President Donald Trump asserted that the ceasefire agreement remained intact despite recent flare-ups, contributing to a reduction in safe-haven demand pressure. Robust physical demand emanating from China persisted in bolstering silver prices. In March, China’s silver imports reached an unprecedented 836 metric tons, representing nearly three times the historical average for that month. Demand was propelled by retail investors transitioning to silver as a substitute for costly gold, alongside significant accumulation by photovoltaic manufacturers in anticipation of modifications to export tax rebates. Increased domestic premiums in China have stimulated global silver shipments to the nation. At the conclusion of April 2026, silver reserves in London vaults totaled 27,454 tonnes, reflecting a minor decline of 0.1% compared to the preceding month.
From a technical perspective, the market is experiencing new buying activity, as evidenced by a 0.67% increase in open interest, which settled at 6,829 lots, alongside a price gain of Rs 3,382. Silver is currently finding support at Rs 258,570, with the potential for additional declines toward Rs 255,210. Resistance is identified at Rs 265,145, and an upward movement beyond this threshold may propel prices towards Rs 268,360.