Silver Stumbles to $36: A Healthy Correction or the Start of a Further Decline?
US economic data such as the Employment Cost Index and the PCE Price Index this week suggest that the Fed may delay interest rate cuts, which has kept the dollar strong and limited upside for precious metals, including silver.
When the US dollar strengthens, precious metals like silver become more expensive for non-dollar buyers, reducing demand.
Although supply deficits persist, several large mines have begun to increase production following the pandemic and high prices. This small surge in supply creates short-term pressure, although the medium-term trend remains bullish.
A technical correction is natural after a major rally, especially as the market awaits further fundamental confirmation.
Silver prices have risen more than 36% year-to-date through June-July. Many traders and institutions are now taking profits.
Despite the ongoing short-term pressure, industrial demand is still rising, particularly for renewable energy applications (solar panels), electronics, and AI. Global production is actually declining, creating a large supply deficit—around 148 million ounces in 2024, and an estimated 118 million ounces in 2025. This could drive prices higher.
A recent Reuters poll revised the silver target upward to $34–40 per ounce in the next 6–12 months, driven by expectations of policy risks and strong demand.
Strong fundamental momentum supports a medium-term uptrend, although there is no technical confirmation of a breakout.
Source: Newsmaker.id
