Silver settled 1.64% lower at Rs. 219,217, declining by Rs. 3,660 as the US dollar maintained its strength ahead of crucial inflation reports that may impact the Federal Reserve’s interest rate outlook. Federal Reserve Governor Christopher Waller stated that the recent increase in US bond yields is indicative of stronger economic growth instead of heightened inflation expectations. Meanwhile, Cleveland Fed President Beth Hammack supported a relatively prompt shift toward a more restrictive monetary policy approach to manage the increasingly widespread inflation.
Despite recent weakness, delegates at the London Bullion Market Association’s annual conference in Sorrento, Italy, projected silver prices could reach $97 per ounce over the next 12 months, compared with the prevailing level of around $61. Perth Mint silver sales experienced a remarkable increase of 81.3% month on month, reaching 605,408 ounces in September, marking the highest level since March, and reflecting an approximate year-on-year rise of 4.6%. London’s silver vault holdings increased by 0.5% month on month, reaching 28,213 tonnes at the end of July 2026. This amount is valued at $52.7 billion and is equivalent to roughly 940,423 silver bars.
According to the Silver Institute and Metals Focus, the market is approaching its sixth consecutive annual structural deficit, with 762 million ounces removed from stocks since 2021. The global silver deficit is anticipated to expand to 46.3 million ounces in 2026, up from 40.3 million ounces in 2025, even with a forecasted 2% decrease in overall demand. Industrial silver fabrication is projected to decline by 3%, reaching a four-year low, whereas demand for coins and bars is anticipated to rise by 18%, bolstered by a resurgence in US investment demand. Total global supply is anticipated to decrease by 2%.
Silver is currently experiencing renewed selling pressure, as evidenced by an 8.74% increase in open interest to 19,291 contracts, coupled with declining prices. This suggests the establishment of new short positions. Immediate support is positioned at Rs. 217,460, succeeded by Rs. 215,695, whereas resistance is established at Rs. 222,280. A sustained move above this level could push prices toward Rs. 225,335, whereas continued selling may expose lower support levels.
