Silver Merchants Exploit Supply Squeeze Amid Rising Demand

Traders lifted silver prices to $38.11 per ounce this morning, according to COMEX futures and Trading Economics data. Merchants capitalized on persistent supply shortages.

Industrial buyers drove the gains amid record demand from solar and electric vehicle sectors. Silver climbed 0.63% in the last 24 hours. Prices rebounded from $37.87 at yesterday’s close. Overnight sessions saw cautious buying as U.S. Treasury yields dipped.

Supply deficits widened to 148.9 million ounces last year. Mine production stagnated while demand hit 680.5 million ounces. Merchants profited from this imbalance through direct sourcing from producers.

China purchased silver straight from miners. This action tightened global stocks. U.S. exporters shifted to buying amid unusual market flows.

Industrial use consumed half of total demand. Solar panels took 16% and grew 14% yearly. Electric vehicles added 2.9% more pressure on supplies.

Macro factors supported trade opportunities. Federal Reserve rate-cut odds reached 87% for September. Core inflation held at 2.9% year-over-year.

Geopolitical risks boosted safe-haven trades. Trump’s planned meeting with Zelenskiy added uncertainty. Merchants hedged positions for potential volatility.

ETF inflows surged to 95 million ounces in the first half. Global holdings topped 1.13 billion ounces. This trend signaled strong investor backing for merchants.

Silver Builds Momentum for Breakout

Technical indicators flashed bullish signals. The daily chart showed prices above the 50-day SMA at $37.80. The 200-day SMA provided firm support near $35.14.

RSI stood neutral at 55 on the daily timeframe. It avoided overbought levels above 70. This setup allowed room for further upside trades. MACD displayed a positive crossover.

The 12-day EMA crossed above the 26-day EMA. Momentum shifted upward in the last sessions. Bollinger Bands contracted around the 20-day SMA. Volatility eased as prices consolidated near $38. Merchants eyed breakouts beyond the upper band at $38.50.

Volume confirmed the rebound with 6,742 contracts traded yesterday. Spikes accompanied green candles on the 1-hour chart. This validated short-term buying interest.

Fibonacci retracement levels marked key supports. The 38.2% level held at $37.46 during pullbacks. Resistance loomed at 61.8% near $39.00.

The 1-hour chart revealed intraday noise. Prices fluctuated between $37.83 and $38.20 overnight. Moving averages converged for a potential bullish flag pattern.

Global Liquidity Index trended downward slightly. The yellow line dipped to 48.49 on both charts. Yet silver defied this by rising, highlighting demand strength over liquidity concerns.

Merchants positioned for profits above $40 if resistance breaks. Supply tightness offered trade advantages. Risks included a stronger dollar capping gains.

Shanghai prices equated to $38.50 per ounce. London fixings aligned at $38.00. These markets converged, enabling arbitrage opportunities.

HSBC forecasted $35.14 average for 2025. Analysts noted geopolitical lifts. Merchants monitored these for strategic buys.

Silver’s story centered on merchant gains from deficits. Traders navigated macro winds effectively. The metal promised continued trade potential.

LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.