Silver prices experienced a notable increase of 3.66%, closing at Rs 253265. This surge was bolstered by a reduction in geopolitical tensions in the Middle East, which alleviated inflation worries and contributed to a decline in crude oil prices. Market sentiment showed signs of improvement following reports that suggested advancements toward a potential agreement between the U.S. and Iran. It was reports that the White House is approaching a potential agreement that may resolve the conflict and reinitiate nuclear discussions.
The proposed agreement encompasses augmented UN inspections, limitations on uranium enrichment for a duration of 12 to 15 years, and a phased approach to sanctions relief for Iran. Previously, U.S. President Donald Trump halted escalation plans, referencing advancements in diplomatic negotiations, which bolstered risk appetite throughout financial markets. On the economic front, U.S. labor market data exhibited notable strength, as private businesses added 109,000 jobs in April 2026, surpassing market expectations of 99,000 and representing the most significant increase since January 2025.
Nonetheless, the decline in the housing sector data tempered optimism, with U.S. building permits decreasing by 11.4% month-on-month to an annualized rate of 1.363 million units in March. Meanwhile, expectations of a more stringent monetary policy persisted, with the CME FedWatch Tool reflecting approximately a 35% likelihood of a Federal Reserve rate increase by the end of the year, a notable rise compared to the figures observed last week. Demand for physical silver from China has remained a significant factor in sustaining prices.
In March, China recorded an unprecedented import of 836 metric tons of silver, a figure that is nearly threefold the historical seasonal average. This surge can be attributed to robust retail investment demand and substantial stockpiling by the photovoltaic sector in anticipation of forthcoming tax rebate adjustments. Robust domestic premiums stimulated international shipments to China.