Sluggish Supply, Rising Demand, Strong Silver Fundamentals in 2025
Global silver prices rallied again in today's trading, driven by a combination of fundamental and technical factors supporting a bullish trend. This precious metal gained momentum from the weakening US dollar and surging industrial demand.
From a fundamental perspective, silver is still viewed as a safe-haven asset amid speculation of a US interest rate cut. The weakening dollar has encouraged investors to turn to precious metals, including silver. Furthermore, industrial demand continues to rise, particularly from the renewable energy sector. Data from the Silver Institute shows that total global demand reached a record high of 680.5 million ounces in 2024, largely driven by the solar panel industry.
Meanwhile, silver supply is not easily increased because it is largely derived as a byproduct of mining other metals, so its response to price increases tends to be slow.
"Silver's fundamentals remain strong, particularly from the industrial demand side and its role as a hedge. As long as prices remain above $37.00, the uptrend has the potential to continue," said a commodity analyst from FXLeaders.
With a combination of fundamental support and positive technical signals, silver is predicted to remain on a bullish path in the short to medium term.
The nearest support level is at $37.97–$36.05, while the next resistance level is at $39.20–$40.00. A breakout above this resistance level could potentially lead to a price surge to $41.00.
Source: Newsmaker.id
