Market Overview
On December 30, 2025, the silver market experienced a significant rally, recovering from substantial losses incurred the previous day. Traders are optimistic about regaining momentum, with the futures market focusing on the $70 level as a critical support point.
Technical Analysis
The silver market's performance on Tuesday indicates a recovery effort, with traders aiming to stabilize after a volatile session on Monday. The $70 mark is viewed as a major floor, and there is a consensus that sideways trading is necessary for the market to adjust to the recent price increases. This stabilization would allow market participants to accept the new price levels.
Price Sustainability
Despite the current rally, there are concerns regarding the sustainability of the momentum. Analysts suggest that if the price were to drop below $70, it would not necessarily indicate a trend reversal but could lead to further declines to $65 and potentially $60. However, the overall sentiment is that the floor for silver prices has risen significantly, and a return to previous lows around $12 per ounce is unlikely.
Market Sentiment
Traders are advised to adopt a "buy on the dip" strategy, reflecting a cautious optimism about the silver market's future. The current environment suggests that market participants are still trying to ascertain the true value of silver, which has been historically suppressed. The prevailing sentiment is one of reluctance to short the market, indicating confidence in a potential upward trajectory.