Silver Surges as Supply Tightens and Technicals Signal Overextension

Market data from COMEX and LBMA reveal silver’s spot price at $38.85 per ounce on July 14, 2025 morning. Traders pushed prices up 1.54% in Asian sessions. This build on July 13’s surge to $39.07.

Silver extended gains on July 13 as buyers reacted to U.S. tariff threats under President Trump. Prices breached $39 briefly, the highest since 2011. Overnight trading saw minor pullbacks but held above $38.50.

Supply deficits drive this rally. Miners forecast a 2% output rise to 1.05 billion ounces in 2025. Demand drops only 1%, leaving a 148 million ounce gap. Industrial uses consume over 700 million ounces yearly.

Solar panels and electric vehicles boost demand. New tech requires more silver per unit. Electronics add to the pressure. Tariffs target imports from Mexico, which supplies 23% of global silver.

A weaker dollar and lower yields support buying. Investors seek safe havens amid trade tensions. ETF inflows hit records, with $1.6 billion in June alone.

The 4-hour chart shows silver breaking the 200-period moving average at $37.50. Bollinger Bands expand, indicating higher volatility. RSI at 66.54 signals overbought conditions without exhaustion.

Green candles dominate recent bars. Volume bars rise on up moves, confirming strength. Support holds at $38.32, resistance eyes $39.06. The daily chart displays a bull trend from $30 January lows. Higher highs and lows persist.

MACD turns positive, showing momentum shift. Bollinger Bands widen after consolidation. Stochastic trends up to 66.59. This suggests continuation toward $40 if $39 breaks.

Merchants benefit from these dynamics. Tariffs shield domestic trade interests. They disrupt foreign supply chains and raise prices for U.S. producers. Volumes on COMEX reached 99,830 contracts on July 13.

Open interest stays high, pointing to sustained bets. Shanghai exchange reports steady physical demand. Analysts at Saxo Bank predict $40 soon. Silver Institute notes 25% average price rise in first half 2025.

These factors underline market tightness. Businesses watch closely. Higher prices affect costs in renewables and tech. Yet, deficits ensure upward pressure.

Silver’s path reflects real trade barriers and resource needs. Stakeholders prepare for more volatility.

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