Silver Retreats to $36.28 as Technicals Signal Pause and Supply Deficit Persists

Silver traded at $36.28 per ounce in early trading on June 19, 2025, after a sharp pullback from this week’s 13-year high. This price, taken directly from trading platforms at 06:39 UTC, reflects a significant correction.

Traders responded to shifting technical and macroeconomic signals. The daily chart shows a clear loss of momentum. The Relative Strength Index (RSI) dropped from 67.9 to 62.4, moving away from overbought territory but not yet signaling oversold conditions.

The Moving Average Convergence Divergence (MACD) line crossed below the signal line, with the histogram shrinking, confirming a bearish momentum shift.

Bollinger Bands, which widened during the rally, now show price pulling back toward the middle band, indicating reduced volatility. The price closed below the 14-period moving average, with immediate support at $35.98 and resistance at $36.77.

The four-hour chart reinforces the bearish view. The RSI fell sharply to 40.6, close to oversold levels. The MACD turned negative, with the histogram deepening into red, and price action broke below short-term moving averages.

The technical setup suggests the market is searching for a new equilibrium, with support at $35.98 and resistance at $36.64 and $36.77. Volume indicators show no surge, suggesting the move reflects steady selling rather than panic.

Silver Faces Mixed Signals

Fundamentals remain robust. The Silver Institute confirms a fifth consecutive annual supply deficit, projected at 149 million ounces for 2025. Industrial demand, especially from solar and electronics manufacturers, continues to outpace mine supply.

Recycling flows remain subdued, indicating tight above-ground stocks. ETF inflows since March reached $2.3 billion, outpacing gold and highlighting investor interest in silver’s dual role as an industrial and safe-haven asset.

Macroeconomic factors, however, have shifted. The Federal Reserve left interest rates unchanged, and its cautious tone strengthened the US dollar, making silver less attractive in the short term.

Geopolitical tensions in the Middle East, which had supported the earlier rally, failed to offset profit-taking and technical selling pressure. The last 24 hours tell a story of a market pausing after a strong run.

Silver’s fundamentals remain supportive, with supply deficits and industrial demand unchanged. Yet, the technical picture has shifted to neutral-bearish, and traders are watching for either a rebound from support or a deeper correction.

The next sessions will reveal whether silver can regain its upward momentum or if the market will continue to consolidate at lower levels.

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