Silver prices fell by 2.09%, closing at Rs 216,013, influenced by a robust U.S. dollar and increasing anticipation that global interest rates may stay high, even in light of softer inflation figures. Investor sentiment exhibited a degree of caution as rising geopolitical tensions in the Middle East drove crude oil prices upward, heightening worries that inflationary pressures may endure. The recent escalation ensued after new U.S. strikes on Iranian military targets, prompting Tehran’s retaliation. This development has heightened concerns regarding potential disruptions to the Strait of Hormuz, consequently bolstering demand for safe-haven assets while exerting pressure on industrial metals.
On the macroeconomic front, U.S. consumer and producer inflation both eased in June, yet stronger retail sales and a rebound in the dollar index to 100.6 bolstered confidence in the resilience of the U.S. economy. Meanwhile, pending home sales experienced a decline of 5.4% in June, representing the most significant monthly drop since December 2025. Concurrently, the NAHB Housing Market Index decreased to 34 from 36, reflecting ongoing fragility in the housing sector. Fed Chair Kevin Warsh reaffirmed the central bank’s dedication to managing inflation, while refraining from signalling any forthcoming adjustments to policy. Fundamentally, silver maintains long-term support, even in the face of short-term weakness.
ANZ anticipates a gradual improvement in silver fundamentals over the medium to long term, despite prices being closely tied to fluctuations in gold. London vault holdings rose by 1.7% month-on-month, reaching a total of 28,082 tonnes, which is roughly equivalent to 936,052 silver bars. In contrast, India’s silver imports experienced a significant decline of 87% in value and 94% in volume year-on-year during May, attributed to stricter import restrictions and elevated import duties that limited inflows.
Silver is currently experiencing renewed selling pressure, as evidenced by a 4.72% increase in open interest, which suggests the establishment of new short positions. Immediate support is established at Rs 214,025, with subsequent support at Rs 212,035. Resistance levels are identified at Rs 219,070 and Rs 222,125. Sustained trading below support may prolong the corrective phase, while a breakout above resistance could rejuvenate bullish momentum.