Silver Holds Steady at 13-Year Highs as Supply Deficit and Industrial Demand Dominate Narrative

Silver prices continued to consolidate near 13-year highs on June 11, 2025, as the market absorbed the impact of a persistent supply deficit and surging industrial demand.

According to official market data, the spot price of silver hovered around $36.46 per ounce in early trading, reflecting a period of stability after the metal’s sharp rally earlier in the month.

In India, prices remained unchanged at ₹109,000 per kilogram, marking a 9% rise since the beginning of June. The current rally stands out for its resilience at elevated levels.

Unlike previous breakouts that quickly reversed, silver has maintained its gains above $36, signaling a shift in market dynamics. Analysts attribute this to a fundamental imbalance: industrial demand, especially from green technologies and electronics, continues to outpace global mine supply.

The Silver Institute’s latest data confirms that this is the fifth consecutive year of a global supply deficit, with industrial applications accounting for over half of total demand.

Solar panel production and electric vehicle manufacturing have emerged as critical drivers, with China’s renewable energy expansion and India’s EV policies further boosting consumption.

Silver Rally Strengthens Amid Tight Supply

Despite the price surge, the supply response remains muted. Recycled silver, which historically increased with rising prices, has not met expectations.

Dealers report that above-ground inventories are not entering the market in significant quantities, suggesting that accessible supplies may be tighter than previously believed.

This dynamic has amplified the impact of each new wave of industrial buying, reinforcing the current price structure. From a macroeconomic perspective, silver’s appeal has grown as global monetary policy tilts dovish.

The European Central Bank and Bank of England both cut rates recently, while the US Federal Reserve has held steady. The resulting weakness in the US dollar has further supported precious metals, with silver benefiting from its dual role as both an industrial input and a safe-haven asset.

Ongoing trade tensions and uncertainty around tariff policies have also contributed to investor interest in silver as a hedge. Technical analysis of the four-hour and daily charts confirms the market’s bullish structure.

On the four-hour chart, silver trades well above the 50, 100, and 200-period moving averages, with price action consolidating near the upper Bollinger Band.

The Ichimoku Cloud remains supportive, and the Relative Strength Index shows mild overbought conditions, which could prompt a short-term pullback toward the $36.15 support area.

However, the overall trend remains upward, with key resistance at $36.90 and potential for further gains if momentum resumes. The daily chart reinforces this outlook. Silver holds above all major moving averages, and the recent breakout above $35 has established a new support base.

The market’s ability to sustain these levels, rather than retreat, signals underlying strength. Volume remains robust, particularly in exchange-traded funds, which have seen steady inflows as investors seek exposure to the metal’s upside.

In summary, silver’s stability at multi-year highs reflects a convergence of strong industrial demand, constrained supply, and supportive macroeconomic conditions.

The market’s technical posture suggests further upside is possible, provided prices stay above key support levels. The next 24 hours will likely hinge on US inflation data, which could set the tone for the next phase of silver’s rally.

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