Summary of Silver Prices Continue to Rise, Outperforming Gold and Global Indices

Current Silver Price Trends

Silver prices have been on an upward trajectory, recently reaching $39.13, marking the highest level since September 22, 2011. The immediate challenge for silver is to break through the psychological resistance level of $40.00, with current trading around $38.50.

Since hitting a low of $28.36 on April 7, 2025, silver has surged approximately 38%, and it has gained about 33% year-to-date, outperforming high-risk assets like Bitcoin and global equity indices, particularly in the U.S., Europe, China, and Japan. In comparison, gold has risen by 28% in the same timeframe.

Key Drivers of Silver's Rally

Several factors are contributing to the rise in silver prices:

• Strong Industrial Demand: Silver is utilized across various industries, including pharmaceuticals, medical supplies, and electronics.
• Rising Gold Prices: Gold has also seen an increase, reaching $3,375, its highest in three weeks.
• Interest Rate Expectations: Anticipation of two interest rate cuts by the U.S. Federal Reserve this year is favorable for silver as a non-yielding asset.

Focus on Upcoming U.S. Inflation Data

Market participants are closely monitoring the upcoming release of the U.S. Consumer Price Index (CPI) and Core CPI, scheduled for today at 4:30 PM UAE time. Expectations are for the headline CPI to rise by 2.6% year-over-year in June, up from 2.4% in May, while the Core CPI is projected to increase to 3.00% from 2.8%.

Any readings below expectations for these indicators could positively impact silver prices.

Technical Analysis of Silver

The technical outlook for silver remains bullish, supported by several indicators:

• The alignment of the 20-day, 50-day, and 200-day moving averages is positive, with the 20-day above the 50-day and the 50-day above the 200-day.
• The Relative Strength Index (RSI) is at 68, indicating ongoing bullish momentum.
• The MACD shows convergence between the MACD line and the signal line, suggesting that a bullish crossover could further enhance the positive outlook for silver.