Silver broke above a key resistance level at $33.45 earlier this week. Momentum now favors a retest of $34.24, with $34.87 as the next upside target. If prices soften, strong support is expected between $32.53 and $31.81, while the 50-day moving average near $32.15 adds another layer of technical support. The gold rally has added credibility to silver’s breakout, providing additional confirmation for traders watching both markets.
Physical Demand and Supply Crunch Add Fuel
Silver’s bullish case is also underpinned by structural factors. Demand from solar, EVs, and green energy sectors remains firm, while the market is on pace for a fifth consecutive global supply deficit in 2025. ETF inflows have started to pick up, and physical demand remains resilient. These supply and demand imbalances have some analysts calling for longer-term moves above $40, with bullish extremes stretching toward $75–$100 under a true squeeze.
Outlook: Silver Bias Positive with Gold Providing Macro Tailwind
Silver’s near-term setup is supported by technical strength, physical demand, and a bullish macro overlay. While gold continues to anchor sentiment with all-time highs and central bank support, silver offers more headroom on a relative basis. Unless Friday’s PCE data comes in unexpectedly hot, the current environment continues to favor additional upside in both metals—led by silver.
More Information in our Economic Calendar.