Silver Holds Steady as Market Eyes Policy Shifts and Tight Supply

Official price data from July 8, 2025, places silver at $36.81 per ounce in early trading. The market has moved little since yesterday, reflecting a cautious stance among traders.

The charts show that silver maintained a narrow range overnight, with no sharp moves in either direction. This stability follows a day of moderate trading volumes and a lack of major liquidity events across key global exchanges.

Market participants continue to focus on upcoming U.S. tariff decisions. The White House has signaled possible 25% tariffs on imports from Japan and South Korea.

This policy uncertainty has kept many traders on the sidelines, waiting for clarity before taking new positions. The Federal Reserve’s next meeting, scheduled for the end of July, also looms large.

Recent jobs data from the United States reduced expectations for a near-term rate cut, adding to the current sense of caution. The technical picture on the daily chart confirms consolidation.

The price remains above both the 50-day and 200-day moving averages, which signals a bullish long-term trend. However, the shorter-term indicators show a lack of momentum.

The Relative Strength Index (RSI) sits near 60, neither overbought nor oversold, suggesting that buyers and sellers are evenly matched.

The Moving Average Convergence Divergence (MACD) indicator has flattened, showing that bullish momentum has stalled. Bollinger Bands have narrowed, indicating reduced volatility and a market waiting for a catalyst.

On the four-hour chart, silver continues to trade sideways between $36.50 and $37.00. The price stays above the 200-period moving average, which supports the longer-term uptrend. Short-term moving averages have converged, and the MACD histogram hovers near zero.

The RSI remains just below 60, confirming the lack of strong buying or selling pressure. These signals point to a market in a holding pattern, with participants unwilling to commit until new information emerges.

Fundamental factors continue to support silver’s price. Global mined output is set to rise by just under 2% this year, but the market faces its fifth straight annual deficit. Industrial demand, especially from the solar and electronics sectors, remains robust.

ETF inflows have continued, with Indian silver ETF folios up 35% so far this year. This investment demand has helped offset the impact of a stronger U.S. dollar, which typically weighs on precious metals.

Volumes on major futures exchanges stayed moderate overnight, with around 2,700 contracts traded on the CME. Asian and European markets mirrored the global trend, with steady demand and little price movement.

Indian and Chinese buyers remained active, but did not drive prices higher. The silver market remains balanced as traders await policy decisions and fresh economic data.

Supply deficits and strong industrial demand provide support, but uncertainty over tariffs and interest rates keeps the market in check. The technical and fundamental backdrop suggests that silver will likely continue to consolidate until a clear catalyst emerges.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error

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