Silver Holds Firm as Supply Squeeze and Macro Uncertainty Drive Market

Silver prices edged higher in the last 24 hours, trading at $36.28–$36.33 per ounce on June 13, 2025, according to official spot and futures data.

The domestic Indian market reflected the global trend, with silver rising about 0.56% to ₹1,06,730 per kilogram in Mumbai. The market’s resilience follows a week of strong gains, with the June COMEX contract settling at $36.688 and marking a new 52-week high.

The latest surge finds roots in a combination of persistent supply deficits and robust industrial demand. The Silver Institute reports four consecutive years of supply shortfalls, with industrial use reaching a record 680.5 million ounces in 2024 and projections for another deficit in 2025.

Solar panel and electric vehicle manufacturers continue to drive demand, while ETF inflows remain strong. A record 29 million ounces entered a major London silver ETF this week, signaling investor appetite and tightening available supply.

Macroeconomic factors also shape the narrative. Lower-than-expected US inflation data renewed expectations for a Federal Reserve rate cut, weakening the dollar and making silver more attractive.

However, global uncertainty persists. The World Bank recently lowered its 2025 growth forecast to 2.3%, and ongoing trade tensions and Middle East instability sustain safe-haven demand for precious metals.

Despite a temporary dip after a US-China trade truce announcement, silver quickly recovered as investors focused on the broader macro picture. Technical analysis of the 4-hour and daily charts confirms the market’s bullish structure.

The 4-hour chart shows silver consolidating above $36.10, with support at $35.50 and resistance near $36.95. The Relative Strength Index (RSI) sits around 53–56, indicating neither overbought nor oversold conditions.

The Moving Average Convergence Divergence (MACD) remains slightly positive but has flattened, suggesting consolidation after the recent rally. Bollinger Bands show price near the upper band, reflecting ongoing volatility.

On the daily chart, silver maintains a strong uptrend. The RSI stands elevated at 67–68, and the MACD is firmly positive. Prices trade above key moving averages and the Ichimoku cloud, confirming bullish momentum.

Support levels at $35.41 and $34.26 have held, while resistance at $37.33 remains in focus. The technical setup points to continued upside potential, provided silver holds above $35.50.

Volumes and ETF flows reinforce the story. London’s ETF inflow of 29 million ounces this week highlights institutional demand. Indian markets saw steady buying, and Chinese industrial users remained active, especially on price dips.

COMEX open interest remains high, with July contracts rolling and adding to upward price pressure. In summary, silver’s strength reflects a convergence of tight supply, strong industrial and investment demand, and macroeconomic uncertainty.

The technical picture supports further gains, with the market poised to challenge resistance near $37.00 and possibly higher if current trends persist. Investors and traders remain alert to macro data and geopolitical developments, which could dictate the next move for this critical industrial and monetary metal.

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