Silver prices increased by 1.27% to close at Rs 233,304, buoyed by disappointing U.S. employment figures that strengthened the anticipation of a more measured approach from the Federal Reserve. The U.S. economy experienced a modest increase of 57,000 jobs in June, significantly underperforming against market expectations of 110,000 and the revised figure of 129,000 for May. This development signifies the slowest monthly job growth observed in the past four months. Employment gains were primarily observed in professional and business services, social assistance, and healthcare sectors, whereas there was a decline in employment within the leisure and hospitality industries.
Initial jobless claims decreased slightly to 219,000, while continuing claims increased to 1.814 million, marking the highest level in three months. This trend suggests a gradual softening in labour market conditions. Meanwhile, the unemployment rate unexpectedly eased to 4.2%, largely due to a decline in labour force participation rather than stronger hiring. In the physical market, silver holdings in London vaults increased by 0.6% during May to 27,611 tonnes, equivalent to around 920,378 silver bars, reflecting stable institutional inventories.
India’s silver imports experienced a significant decline, decreasing by 87% year-on-year in value and 94% in volume, totalling merely 33 metric tonnes, marking the lowest level since February 2023. The decline was a consequence of stricter government regulations on silver imports, coupled with a rise in import duties from 6% to 15%. These measures were implemented by authorities aiming to curtail the influx of precious metals and alleviate the strain on foreign exchange reserves. Despite the pronounced deceleration in imports, India has already achieved a remarkable $12 billion in silver imports during the 2025/26 financial year.
Technically, the market continues to exhibit fresh buying interest, as evidenced by a 0.56% increase in open interest alongside rising prices, which indicates an enhancement in bullish sentiment. Silver exhibits immediate support at Rs 229,725, with additional downside support positioned at Rs 226,150. On the upside, resistance is observed at Rs 236,725, and a sustained breakout above this level could lead to further gains toward Rs 240,150.