Silver prices advanced by 0.80% to settle at Rs 230,384, bolstered by enhanced investor sentiment following remarks from Federal Reserve Chair Kevin Warsh regarding the easing risks of US inflation. Softer inflation expectations were bolstered by weaker price components in the most recent ISM PMI report, alongside a decrease in wholesale energy prices as tensions in the Middle East stabilised. Meanwhile, ADP data indicated that the US private sector added nearly 100,000 jobs in June, which was slightly below market expectations but still comfortably above this year’s average. This performance enables the Federal Reserve to uphold a restrictive monetary policy stance if deemed necessary.
The S&P Global US Manufacturing PMI was revised lower to 53.9 in June from the preliminary estimate of 55.7, yet it continued to exceed the expansion threshold for the eleventh consecutive month, suggesting ongoing but moderating manufacturing activity. In the physical market, silver holdings in London vaults rose by 0.6% to reach 27,611 tonnes, which is roughly equivalent to 920,378 silver bars, with an aggregate value of $67.3 billion.
In India, silver imports experienced a significant decline of 87% in value and 94% in volume year-on-year during May, reaching the lowest level since February 2023. This downturn follows the government’s implementation of stricter import restrictions on nearly all silver products. Authorities have increased import duties on gold and silver to 15% from 6% in an effort to restrict imports of precious metals and alleviate pressure on foreign exchange reserves. Despite the pronounced deceleration in imports, India had already documented a remarkable $12 billion in silver imports during the 2025/26 financial year.
Technically, Silver continues to attract fresh buying interest, as evidenced by a marginal increase in open interest of 0.02%, suggesting ongoing market participation. Immediate support is observed at Rs 224,290, succeeded by Rs 218,190, whereas resistance is established at Rs 234,700. A decisive breakout above this level may open the door for further gains toward Rs 239,010.