Quick overview
- Spot silver is trading around $57.50 per ounce, with physical supply deficits providing a support level near $50.
- Demand for silver is driven by solar panel manufacturing, electric vehicle growth, and expanding power infrastructure for AI data centers.
- Recent elevated prices have led to increased scrap recycling and industrial substitution, which are mitigating supply tightness despite long-term structural deficits.
- The short-to-medium term outlook for silver remains bearish, with key technical indicators showing persistent negative momentum.
Spot silver trades around $57.50 / oz. Physical supply deficits provide a floor near $50, but cautious global central bank policy and elevated scrap recycling cap aggressive upside. Demand remains supported by solar (photovoltaic) panel manufacturing, electric vehicle (EV) growth, and expanding power infrastructure for AI data centers.
While industrial demand points to long-term structural physical deficits, elevated prices over the past year increased scrap recycling and industrial substitution, mitigating supply tightness. Near-term manufacturing softness in key industrial hubs is on runaway physical demand.
Interest Rates & Yields: As a non-yielding asset, silver responds strongly to U.S. Federal Reserve policy and Treasury yields. Sticky inflation readings have delayed aggressive rate cuts, keeping real yields elevated and putting downward pressure on precious metals.
Trend: The short-to-medium term structural bias remains bearish/corrective. Recent price bounces have struggled to sustain gains as price trades below key Simple Moving Averages (SMAs) and the 50-period Exponential Moving Average (EMA50).
Momentum: The Relative Strength Index (RSI) fluctuates in the 35–40 range, signaling persistent negative momentum, while the Moving Average Convergence Divergence (MACD) remains pinned in negative territory.
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks the financial markets with over 20 years of working experience in investment trading
