Silver prices decreased by 0.55%, closing at Rs 236,099, primarily attributed to profit-taking and the strengthening of the U.S. dollar in the wake of recent increases. Nonetheless, the overall market sentiment continued to be favourable following disappointing U.S. labour data, which diminished anticipations of an imminent rate increase by the Federal Reserve. In June, nonfarm payrolls saw an increase of merely 57,000, leading traders to adjust the likelihood of a rate hike in September to approximately 50%.
Economic data revealed that the U.S. ISM Services PMI declined to 54.0 in June, down from 54.5 in May, signalling a deceleration in the growth of the services sector. Meanwhile, London silver vault holdings rose by 0.6% to 27,611 tonnes, whereas India’s silver imports experienced a significant decline due to stricter import regulations and elevated duties, reaching their lowest point since February 2023.
Technically, silver is experiencing renewed selling pressure, as evidenced by a 2.07% increase in open interest, which suggests the establishment of new short positions. Immediate support is identified at Rs 234,765, with subsequent support at Rs 233,425, while resistance is positioned at Rs 237,690. A breakout above this level may extend gains toward Rs 239,275.