Silver prices concluded the trading session at Rs 235,659, reflecting a decline of 0.51% as investors took the opportunity to realise profits following the recent upward trend. This movement comes amid considerations regarding the implications of high oil prices on inflation and the Federal Reserve’s perspective on interest rates. However, underlying support remained robust due to industrial consumption associated with solar panel manufacturing, electronics, and electricity grid development.
Chinese imports of silver-bearing ores experienced a remarkable increase of 62.5% year-on-year in June, reaching 219,000 tonnes, underscoring robust demand for raw materials. CFTC data indicated that speculative net-long COMEX silver positions increased by 2,679 contracts, reaching a total of 11,067 contracts for the week ending August 4, suggesting a strengthening of bullish sentiment. In July, silver sales at Perth Mint experienced a significant month-on-month increase of 65.5%, reaching a total of 486,043 ounces, while year-on-year sales rose by 7.5%.
London vault holdings increased by 1.7% month-on-month, reaching a total of 28,082 tonnes, with a valuation of $53.1 billion. The global silver market is anticipated to continue experiencing a structural deficit for the sixth consecutive year, with projections indicating that the deficit in 2026 will expand to 46.3 million ounces, up from 40.3 million ounces in 2025, even as total demand is expected to decrease by 2%. Industrial fabrication is anticipated to decline by 3%, whereas demand for coins and bars is forecasted to increase by 18%. Global supply is projected to decrease by 2%, underscoring persistent long-term supply apprehensions.
Technically, the market is experiencing long liquidation, as evidenced by a 2.49% decline in open interest to 10,873 contracts, coinciding with a price drop of Rs 1,208. Silver is currently encountering support at Rs 232,800, and a decline beneath this threshold may reveal Rs 229,940. On the upside, resistance is positioned at Rs 240,260; a sustained move above this level could initiate a recovery toward Rs 244,860.
