Silver prices concluded the trading session with a notable increase of 1.53%, reaching Rs 2,74,265. This increase was supported by a decrease in U.S. Treasury yields and persistent geopolitical tensions stemming from the stalemate in U.S.-Iran negotiations. The decline in U.S. bond yields from their recent multi-month highs has bolstered sentiment for precious metals, while concerns over a possible escalation in the Middle East have maintained interest in safe-haven assets. Philadelphia Fed President Anna Paulson noted that monetary policy remains “mildly restrictive” and indicated that a potential rate increase could be considered if inflation risks persist or if economic growth exceeds expectations.

Market expectations for a more stringent monetary policy have solidified, as indicated by CME FedWatch data, which now suggests an almost 48.6% likelihood of a 25-basis-point increase in the Federal Reserve’s rate by December. Strong physical demand from China has notably supported silver prices. China’s March silver imports reached a historic high of 836 metric tonnes, nearly three times the typical March average. This surge was driven by strong retail investment demand and considerable stockpiling by the photovoltaic sector in expectation of forthcoming alterations to export tax rebates.

Rising domestic silver prices in China have prompted a surge in global arbitrage shipments, particularly through Hong Kong. Meanwhile, London vault silver holdings saw a modest decline of 0.1%, amounting to 27,454 tonnes at the end of April 2026. In India, the government has implemented prompt restrictions on the importation of silver bars with a purity of 99.9% and semi-manufactured silver products. This measure seeks to regulate the rising influx of imports and ease the strain on the rupee. The action is expected to limit domestic supplies and potentially increase local premiums.

India’s silver imports saw a significant rise in the last fiscal year, driven by investment demand and strong ETF inflows that boosted consumption. Technically, the market is witnessing a resurgence in buying activity, as evidenced by a 0.14% increase in open interest to 9,114 lots, alongside notable price escalations. Support is identified at Rs 2,68,645, with subsequent support at Rs 2,63,025. Resistance is observed at levels of Rs 2,78,090 and Rs 2,81,915.