Silver Prices Correct, Remain Stable Near 2-Week High
Silver prices moved slightly down to US$36.73 per troy ounce on Tuesday, weakening around 0.13% from the previous close at US$36.77. The price of this white metal fluctuated, but remained in the range of US$36-37/oz, approaching its highest level in two weeks. Pressure on silver came from the strengthening US dollar exchange rate and market expectations for tariff easing - providing a slight negative sentiment even though other macro conditions supported this metal. Trading volume is still quite liquid, indicating fairly stable investor interest even though they are waiting for the next monetary policy direction.
Fundamentals Still Supportive, But Industrial Consumption Sluggish
Fundamentally, silver remains in deficit. The World Silver Survey report and analysts such as the Silver Institute state that 2025 will be the fifth consecutive year that the market is in a structural deficit, with demand exceeding supply by around 117-148 million ounces. On the other hand, data from the US and European markets show that industrial usage - especially in the electronics and solar sectors - is still slowing down as manufacturers hold back purchases as prices have risen significantly. This condition creates tension between bullish pressure from the supply side and bearish support from the real demand side. However, the long-term industrial outlook remains positive, especially given silver's role in renewable energy and high technology.
Outlook and Next Triggers
A weaker US dollar or loose monetary policy from the Fed could be a trigger for further increases in silver. Currently, the market is still expecting a US interest rate cut in the second half of 2025, which will weaken yields and make non-yielding metals such as silver more attractive. In addition, global geopolitical tensions and fluctuations in trade tariffs such as the latest US-China case also provide safe-haven support.
Source: Newsmaker.id (Arl)
