Silver prices experienced a significant recovery on Tuesday, with silver futures climbing nearly 2 per cent to ₹2.26 lakh per kilogram. According to reports from The Hindu BusinessLine, the white metal for September delivery climbed by ₹3,693 to ₹2,26,327 per kilogram on the Multi Commodity Exchange after opening lower. The recovery was driven by firm trends in international markets and value buying by investors following recent losses. Latest developments show the metal has extended its gains on Thursday on a weaker-than-expected nonfarm payroll report for June, as reported by Business Standard.
International markets showed similar strength, with Comex silver futures for September contract increasing by 1.28 per cent to USD 59.38 per ounce in New York. As reported by The Hindu BusinessLine, this global recovery provided the foundation for the domestic price rebound. The international strength helped support the precious metal's recovery after recent challenging sessions. Recent updates show silver prices rebounded on Warsh's remarks in the ECB panel discussion on July 1, according to Business Standard.
According to analysts cited in the report, the rebound in silver was attributed to firm trends in global markets and Fed Chair Warsh's remarks on inflation, lower oil prices and weaker-than-expected US nonfarm payroll report may help the metal extend its recovery. The recovery comes after the metal posted steep losses in recent sessions as expectations of tight monetary policy by the US Federal Reserve and a strong dollar weighed on bullion. The current price movement reflects value buying by investors at lower levels, suggesting market participants are taking advantage of the recent decline to accumulate positions.
The weaker-than-expected nonfarm US payroll report for June showed that US hiring has lost momentum as employers added only 57K jobs - much lower than the expected 113K jobs. As reported by Business Standard, two-month payroll net revision stood at -74K jobs, which took the 3-month job average down from 164K in May to 111K in June. However, average hourly earnings at 0.3 per cent m-o-m and 3.5 per cent respectively matched their median forecasts. The US Dollar Index eased on weaker-than-expected NFP report, with the index at 100.79 down 0.6 per cent for the day.
Silver may extend its recovery to $64 in short term with immediate resistance seen at $62, while support is at $60/$59, according to Business Standard. The metal has repeatedly found support in $55-$57 range in recent weeks after falling more than 50 per cent from its record peak of $121 as it slumped below $60 mark. Total known global silver ETF holdings stood at 782.97 MOz as of July 1, which is the lowest since July 2025, with holdings declining 80MOz year-to-date. Registered COMEX inventory at 93.01 MOz has recovered from the cycle low of 75.71 MOz seen in April and now stands at the highest level since mid-February.
