Silver prices concluded the trading session with an increase of 1.14%, reaching Rs 219,967. This uptick was bolstered by a declining U.S. dollar, as investors evaluated the Federal Reserve’s choice to maintain interest rates at their current levels, all while keeping a vigilant eye on the rising geopolitical tensions in the Middle East. Although the Fed maintained its benchmark rate, three FOMC members dissented in favour of an immediate rate hike, with Chair Kevin Warsh emphasising that the pause should not be interpreted as a diminished commitment to addressing inflation. Markets currently assign a 67% probability of a 25-basis-point rate hike in September, an increase from 56% the previous day, while the likelihood of a more substantial 50-basis-point increase has diminished significantly.
Safe-haven sentiment also strengthened following the United States’ recent strikes against Iran, which heightened concerns regarding potential disruptions to global energy supplies and the possibility of renewed inflationary pressures. Economic data indicated a varied perspective for precious metals. The U.S. economy experienced an annualised growth rate of 1.5% in the second quarter of 2026, a deceleration from the 2.1% recorded in the preceding quarter, falling short of market forecasts. Meanwhile, the PCE price index experienced a month-on-month decline of 0.1% in June, driven by a 0.6% decrease in goods prices and a slight easing of services inflation to 0.1%, suggesting a trend of moderating inflation.
Initial jobless claims rose to 197,000, staying below expectations and underscoring the ongoing resilience of the labour market. Silver holdings in London vaults increased by 1.7% to reach 28,082 tonnes at the conclusion of June. In India, silver imports experienced a dramatic decline of 87% year-on-year in value and 94% in volume, totalling merely 33 tonnes in May. This sharp decrease follows the government’s implementation of stricter import restrictions and an increase in import duties to 15%, which has considerably curtailed inflows.
Technically, the market experienced new buying activity, as open interest increased by 0.09% to 12,759 contracts, accompanied by rising prices, indicating enhanced market participation. Silver is maintaining immediate support at Rs 216,720, with a breach below this level likely to challenge Rs 213,475. On the upside, resistance is positioned at Rs 221,805, and a sustained move above this level could extend gains toward Rs 223,645, maintaining a constructive near-term technical outlook.