Silver prices experienced a decline of 2.22%, settling at Rs 230,857, as investors exhibited caution in anticipation of the Federal Reserve’s June meeting minutes, seeking fresh insights into the U.S. interest rate outlook. Sentiment was also shaped by a blend of U.S. economic indicators. The U.S. trade deficit experienced a significant expansion, reaching $77.6 billion in May, primarily due to increased imports. Concurrently, disappointing employment data and downward adjustments to prior payroll statistics have tempered expectations regarding an imminent rate increase.
Markets are currently assigning a probability of approximately 57% to a rate increase in September. Physical indicators exhibited a mixed performance. Perth Mint disclosed a 19% decrease in silver coin and minted bar sales compared to May, alongside a 37% decline year-on-year, indicative of weakened retail investment demand. Meanwhile, silver holdings in London vaults rose by 0.6% to 27,611 tonnes, suggesting a stable state of institutional inventories. India’s silver imports experienced a significant decline following the implementation of stricter government regulations, with the import value decreasing by 87% and volumes plummeting by 94%, reaching the lowest levels observed since February 2023.
Silver is currently experiencing long liquidation, as evidenced by a 3.83% decrease in open interest in conjunction with falling prices. Immediate support is identified at Rs 228,960, with subsequent support at Rs 227,070, whereas resistance is established at Rs 233,420. A sustained move above this level could extend gains toward Rs 235,990.