Silver Market Forecast: Key Insights

Author: James Hyerczyk

Published: July 3, 2025

Overview

The silver market is currently experiencing significant upward momentum, with prices advancing sharply after breaking through a key resistance level. Traders are now focusing on the potential for silver to reach a 13-year high of $37.32, contingent on maintaining support at $36.30.

Market Dynamics

Silver prices have recently surged, with the current trading price at $36.83, reflecting a 0.75% increase. The market's bullish sentiment is supported by a combination of factors:

• A sustained decline in the U.S. dollar, which has decreased over 10% year-to-date, reducing the opportunity cost of holding non-yielding assets like silver.
• Falling two-year Treasury yields, currently at 3.721%, have led traders to anticipate Federal Reserve policy easing, further driving investment into precious metals.
• Geopolitical tensions are enhancing safe-haven demand for silver and gold.

Supply and Demand Outlook

The silver market is also supported by a structural supply deficit. In 2025, global silver demand is projected at 1.20 billion ounces, while supply is expected to rise only to 1.05 billion ounces. This ongoing imbalance is likely to sustain higher price levels as both industrial and investment demand for silver remains robust.

Short-Term Forecast

The short-term outlook for silver remains bullish as long as prices stay above the critical support level of $36.30. If this level holds, traders may see a test of the $37.32 high. Conversely, a break below $36.30 could lead to a correction towards the $35.40-$34.87 range, where buying interest may re-emerge.

Conclusion

In summary, the combination of a weakening dollar, lower yields, and a structural supply deficit creates a favorable environment for silver prices. Traders are advised to monitor these factors closely as they navigate the market.