Silver Holds Above $36 as Supply Squeeze and Industrial Demand Tighten Global Market

Silver prices maintained stability above $36 per ounce on June 26, 2025, as reported by official price feeds and confirmed by Indian market data, which showed no change in domestic rates after a sharp drop earlier in the week.

The global spot price hovered near $35.96 to $36.29, with the Indian benchmark at ₹108,000 per kilogram, reflecting a pause after recent volatility.

The past 24 hours saw silver trade in a narrow band, consolidating gains made during the breakout earlier in June. The market’s attention remains fixed on the $36 level, a key technical and psychological threshold.

Trading volumes eased from the highs seen during the breakout, but open interest in silver futures continues to exceed five-year averages by about 15%, signaling sustained engagement from both institutional and retail participants.

Fundamentally, the silver market faces a persistent supply deficit. The Silver Institute projects the 2025 shortfall at roughly 117.6 million ounces, even as total supply edges up by 2% and demand dips slightly by 1%.

Industrial demand, especially from solar, electronics, and electric vehicles, remains robust. The World Silver Survey 2025 attributes a 15.6% rise in total demand since 2016 to these sectors, with green energy and technology driving consumption.

Recycling flows, which typically increase with higher prices, have failed to keep pace, suggesting limited above-ground stocks are available for sale. Macroeconomic factors continue to influence sentiment.

Silver Consolidates Amid Mixed Technical Signals

The recent easing of geopolitical tensions, notably in the Middle East, has reduced safe-haven flows into precious metals. At the same time, the US dollar’s relative strength and expectations of continued Federal Reserve rate cuts play a role in shaping price direction.

While a stronger dollar can pressure silver, anticipated rate cuts lower the opportunity cost of holding non-yielding assets, supporting precious metals. Technical analysis of the charts confirms the market’s consolidation phase.

On the 4-hour chart, silver trades above key moving averages, with the 200-period SMA providing a solid base near $34.56. The Relative Strength Index (RSI) reads 54.66, indicating neutral momentum.

MACD shows a tentative bullish crossover, but the histogram remains subdued, suggesting indecision. Bollinger Bands have narrowed, reflecting reduced volatility after recent swings.

The daily chart paints a similar picture. Silver holds above both the 20- and 50-day moving averages, with support at $35.84 and resistance at $36.51.

The daily RSI at 60.77 signals mild bullishness, but the MACD histogram has turned negative, hinting at a pause or minor correction. The market’s ability to hold above $36, despite these technical signals, points to strong underlying demand and tight supply.

ETF inflows and physical withdrawals from depositories continue, with silver-backed ETFs adding over 2 million ounces in the latest session. This activity underscores investor confidence in the metal’s long-term prospects.

In summary, silver’s story over the last day is one of consolidation at elevated levels, underpinned by structural supply deficits and resilient industrial demand. The technical setup suggests a market in equilibrium, waiting for the next catalyst.

The balance of fundamentals and technicals indicates that, while immediate upside may be capped by resistance, the downside remains limited as long as the supply squeeze persists and industrial demand holds firm.

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