Silver experienced a notable increase of 2.08% yesterday, closing at Rs 258,540. This rise was bolstered by diminishing inflation worries, following optimism surrounding a possible U.S.-Iran agreement that led to a significant drop in crude oil prices. Reports indicated that the U.S. had conveyed a memorandum via Pakistani intermediaries, with the objective of resolving the conflict and progressively reopening the Strait of Hormuz. Iran is anticipated to provide a response in the near term, with wider discussions regarding its nuclear program likely to ensue in the subsequent weeks.
The decrease in energy prices alleviated concerns regarding sustained inflationary pressures and diminished anticipations for prolonged restrictive monetary policies from leading central banks. However, Federal Reserve Bank of Chicago President Austan Goolsbee cautioned that inflation remains above the Fed’s 2% target and has accelerated since the onset of the Middle East conflict. In April 2026, U.S. private payrolls saw an increase of 109,000 jobs, surpassing market expectations and indicating robust labor market conditions, even in the context of a deceleration in hiring trends.
Conversely, U.S. building permits experienced a decline of 11.4% in March, underscoring the fragility within the housing sector. China continued to be a significant contributor to silver demand, with March silver imports reaching a historic high of 836 metric tons, nearly three times the average level observed over the past decade for that month. Robust retail investment interest, especially in small silver bars as substitutes for costly gold, combined with proactive stockpiling by the photovoltaic sector in anticipation of impending export tax modifications, has markedly enhanced import levels.
From a technical perspective, the market is experiencing short covering, evidenced by a 3.36% decrease in open interest to 6,783 contracts, alongside a price increase of Rs 5,275. Silver currently exhibits immediate support levels at Rs 253,670 and Rs 248,805, with resistance identified at Rs 264,450 and Rs 270,365.