Silver Advances Amid Supply Deficit & Monetary Expectations
Silver prices have continued to show strength in recent sessions, having broken through the key US$50 per ounce level. The latest technical data shows that silver has successfully broken through the resistance area around US$51.20, opening up potential for further gains to US$53-54 per ounce.
This is supported by silver's increasingly prominent role as an industrial asset and safe-haven metal: demand from the solar power, electric vehicle, and electronics sectors continues to rise while global supply begins to show pressure.
Although global macroeconomic conditions remain uncertain—including expectations of high interest rates from the Federal Reserve—silver is benefiting from two factors. First, its strength as an industrial metal makes it relatively insulated from typical economic downturns. Second, it serves as an alternative asset when investors seek a hedge against inflation and a weakening US dollar. However, analysts also warn that relatively low trading volume and smaller market size make silver more vulnerable to sharp corrections than other major metals.
Technically, silver is currently in a consolidation phase after surging 5-14% in recent weeks.
A key support level has been identified around US$50 per ounce—a break below this level could strengthen the bearish signal. Meanwhile, key resistance lies around US$54 per ounce; a break above this level could trigger a further move towards the US$55 zone or higher.
Due to increased volatility, the recommended strategy is to use a tight stop-loss and wait for confirmation of a breakout before opening a large position.
Today, the outlook for silver is neutral to slightly bullish, with upside potential remaining—especially if there are strong triggers such as low inflation/overtime data, a weakening US dollar, or a surge in industrial demand. However, the risk of a correction remains real, especially if volumes are unfavorable or if expectations of high interest rates persist in the market.
Source: Newsmaker.id
