Quick overview
- Silver has reached a 13-year high of $36.06, gaining nearly 19% this year as it catches up to gold’s rally.
- Renewed interest from momentum-driven investors and strong industrial demand, particularly in solar panel production, are driving silver’s price surge.
- Technical indicators suggest a bullish trend for silver, with key resistance levels at $36.11 and $36.78.
- The combination of financial and industrial demand positions silver for continued growth amid global economic uncertainty.
Silver is making serious waves in the metals market right now, touching a 13-year high of $36.06 during Friday’s trading. If you’ve been watching precious metals lately, this shouldn’t come as a complete shock – silver’s finally catching up to gold’s impressive rally, with today’s 4.5% jump adding to its nearly 19% gain this year.
Why Silver Is Suddenly Red Hot
The white metal is finally getting its moment in the spotlight after gold has been hogging attention for months. Alexander Zumpfe at Heraeus Group puts it simply – we’re seeing “renewed interest from momentum-driven investors” who previously focused their money on gold.
It makes sense when you look at the bigger picture. Gold’s up a whopping 42% over the past year, driven by everything from geopolitical tensions to aggressive tariff talk and central banks stocking up. Now silver’s playing catch-up.
The numbers back this up too. Silver ETFs pulled in 2.2 million ounces on Wednesday alone, while hedge funds have been increasing their long positions in the futures market through late May. Add in weak job numbers and falling Treasury yields, and suddenly the market’s pricing in two Fed rate cuts later in 2025 – great news for non-yielding assets like silver.
More Than Just a Pretty Metal
What makes silver particularly interesting right now is its double identity. Unlike gold, silver isn’t just a safe haven – it’s also a crucial industrial metal, especially in clean energy.
Solar panel demand is booming globally, and guess what each panel needs? Silver, and lots of it. According to the Silver Institute, we’re headed for a fifth straight year where demand outstrips supply – creating a perfect storm for higher prices.
This combination of financial and industrial demand creates a powerful one-two punch:
- Solar panel production keeps eating up physical supply
- ETF investors and funds are piling in
- Rate cut expectations make holding silver more attractive
Where Is Silver Headed Next?
From a technical standpoint, silver’s recent breakout above $34.85 (that’s the 1.618 Fibonacci extension) and pushing through the $35.60 resistance confirms we’re in a strong bullish pattern.
The next targets to watch are:
- $36.11 (the 2.272 Fibonacci level)
- $36.78
- $37.38 (major resistance)
For support, keep an eye on:
The momentum indicators are backing this move up too. The MACD shows fresh bullish divergence with a steeply rising histogram and expanding signal line.
How to Play It
If you’re feeling bullish: Look for silver to hold above $35.60 on its way to $36.78. Just make sure to keep a stop-loss below $34.85 to protect yourself.
If you’re more cautious: Watch out for a close below $34.86, which could trigger some profit-taking back toward $33.64.
The Bottom Line
Silver’s push above $36 isn’t just a technical blip – it represents a fundamental shift toward precious metals as global uncertainty rises. With strong underlying demand from both investors and industry, plus all the technical signs pointing up, the path to $36.78 and even $37.38 looks increasingly likely.
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.
His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.
His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
