Silver Holds Steady as Industrial Demand and Tight Supply Dominate Market

Silver traded at $36.36 per ounce on June 16, 2025, maintaining levels near a 13-year high as industrial demand and persistent supply constraints shaped market direction.

TradingEconomics data confirm a 0.07% increase from the previous day, with silver up 12.3% over the past month and 26.8% since the start of the year.

The market’s resilience reflects a convergence of macroeconomic and structural factors that continue to drive interest from both industrial users and investors.

Over the last 24 hours, silver prices consolidated after last week’s strong rally. The spot market hovered between $36.31 and $36.37, showing little volatility but holding above key support.

Technical analysis of the 4-hour and daily charts reveals a market pausing after a sharp advance. The daily chart displays a clear uptrend, with prices trading well above the 50- and 200-day moving averages.

The Relative Strength Index (RSI) sits at 68.49, approaching overbought territory, while the 4-hour RSI remains neutral around 54. The Moving Average Convergence Divergence (MACD) on the daily chart maintains a bullish stance, although momentum has slowed.

Bollinger Bands on both timeframes have tightened, indicating reduced volatility and a potential for breakout in either direction. Fundamental factors underpinning the price include surging industrial demand, particularly from the solar and electric vehicle sectors.

Official projections warn that silver inventories could face depletion in 2025 as photovoltaic and electronics manufacturers increase consumption.

Silver Rally Fueled by Soaring Industrial Demand and ETF Inflows

China’s wind and solar capacity surged by 60 GW in the first quarter, and Europe’s solar output rose 30% year-on-year, both contributing to the demand surge. Military and defense technology sectors also continue to absorb significant quantities of silver, further straining available supply.

Investor flows into silver-backed exchange-traded funds (ETFs) have accelerated. Silver ETFs attracted higher inflows than gold for the third consecutive month, with Indian silver ETF inflows totaling ₹853 crore in May.

This shift signals growing investor preference for silver as a hedge against both inflation and geopolitical uncertainty. The COMEX market reported a four-day winning streak last week, with June contracts settling at $36.69, the highest since 2012.

Macroeconomic uncertainty, including ongoing geopolitical tensions in the Middle East, has reinforced silver’s safe-haven appeal. Despite a strong dollar and rising Treasury yields, investors continue to favor precious metals, seeking protection from market volatility and inflation risk.

The technical outlook remains constructive. Support levels at $36.07 and $34.45 have held firm, while resistance looms at $36.54 and $37.49. The market’s pause reflects indecision, as shown by the doji pattern on the weekly chart, but the longer-term trend remains upward.

Analysts expect the next move to hinge on whether silver can break above the recent high or if profit-taking will trigger a short-term pullback. Silver’s story today is one of robust industrial demand colliding with constrained supply.

This unfolds against a backdrop of macroeconomic uncertainty and investor repositioning. The market’s resilience suggests that, barring a dramatic shift in fundamentals, silver will remain a focal point for both industry and investors in the weeks ahead.

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