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Silver Holds Firm Amid Supply Strain And Industrial Demand Surge
(MENAFN- The Rio Times) Silver prices traded at $36.56 per ounce on June 27, 2025, reflecting a slight pullback of 0.24% from the previous day, according to official market data. In India, the price stood at ₹1,07,900 per kilogram, down ₹100 overnight.
These figures come from the latest published charts and verified price feeds. Over the last 24 hours, the market showed resilience despite minor profit-taking and a modestly firmer U.S. dollar.
The past day saw silver move within a tight range, with the low at $36.39 and the high at $36.72. This stability followed a period of heightened volatility, as investors weighed easing geopolitical tensions against persistent supply constraints.
The ceasefire in the Middle East reduced safe-haven flows, causing a slight dip in demand from risk-averse investors. However, the underlying fundamentals remain supportive.
Silver's industrial demand continues to drive the market. Official data confirm that approximately 80% of silver's total demand comes from manufacturers, especially in solar, electronics, and automotive sectors.
The solar industry's expansion, particularly in China and Europe, has kept industrial consumption at record levels. China's wind and solar capacity rose sharply in the first quarter, and Europe's solar output grew 30% year-on-year, both fueling silver's use in photovoltaic cells.
These facts are drawn from sector reports and the Silver Institute's 2025 outlook. On the supply side, the market faces its fifth consecutive year of deficit, with a projected shortfall of 117.7 million ounces in 2025.
Global mine output remains subdued due to declining ore grades, resource depletion, and longer mine development timelines. Higher operational costs and stricter regulations in key producing countries like Mexico and Peru further restrict new supply.
Official surveys confirm that mine production will reach only 835 million ounces this year, a notable decline from previous years. Technical analysis of the daily chart shows silver in a clear uptrend, with prices above the 20-day, 50-day, and 200-day moving averages.
The MACD indicator remains in positive territory, though momentum has flattened, signaling a pause after the recent rally. The Relative Strength Index (RSI) sits at 65, just below overbought levels, suggesting the market is consolidating gains rather than reversing.
Bollinger Bands indicate that price action is near the upper band, hinting at possible short-term resistance. The four-hour chart confirms this consolidation, with silver holding above key support at $36.05 and encountering resistance near $36.90.
The MACD on this timeframe shows a slight bullish crossover but lacks strong momentum. The RSI at 57 points to mild bullishness without excess. Volumes in futures and spot markets remain robust.
No major ETF inflows or outflows have been reported, and physical market premiums are steady, indicating orderly trading and no signs of panic buying. Macroeconomic factors continue to shape silver's path.
The U.S. dollar's recent weakness, linked to trade policy uncertainty and anticipated Federal Reserve rate cuts, has supported silver. However, any dollar rebound or further easing of geopolitical risks could limit upside in the short term.
In summary, silver's price action over the past 24 hours reflects a market balancing strong industrial demand and chronic supply shortages against shifting investor sentiment. Technical indicators show a consolidation phase within a broader uptrend.
The market's next move will depend on the interplay between macroeconomic signals, industrial consumption, and the pace of mine supply recovery. Silver remains a focal point for both industrial users and investors seeking tangible assets amid ongoing global uncertainty.
These figures come from the latest published charts and verified price feeds. Over the last 24 hours, the market showed resilience despite minor profit-taking and a modestly firmer U.S. dollar.
The past day saw silver move within a tight range, with the low at $36.39 and the high at $36.72. This stability followed a period of heightened volatility, as investors weighed easing geopolitical tensions against persistent supply constraints.
The ceasefire in the Middle East reduced safe-haven flows, causing a slight dip in demand from risk-averse investors. However, the underlying fundamentals remain supportive.
Silver's industrial demand continues to drive the market. Official data confirm that approximately 80% of silver's total demand comes from manufacturers, especially in solar, electronics, and automotive sectors.
The solar industry's expansion, particularly in China and Europe, has kept industrial consumption at record levels. China's wind and solar capacity rose sharply in the first quarter, and Europe's solar output grew 30% year-on-year, both fueling silver's use in photovoltaic cells.
These facts are drawn from sector reports and the Silver Institute's 2025 outlook. On the supply side, the market faces its fifth consecutive year of deficit, with a projected shortfall of 117.7 million ounces in 2025.
Global mine output remains subdued due to declining ore grades, resource depletion, and longer mine development timelines. Higher operational costs and stricter regulations in key producing countries like Mexico and Peru further restrict new supply.
Official surveys confirm that mine production will reach only 835 million ounces this year, a notable decline from previous years. Technical analysis of the daily chart shows silver in a clear uptrend, with prices above the 20-day, 50-day, and 200-day moving averages.
The MACD indicator remains in positive territory, though momentum has flattened, signaling a pause after the recent rally. The Relative Strength Index (RSI) sits at 65, just below overbought levels, suggesting the market is consolidating gains rather than reversing.
Bollinger Bands indicate that price action is near the upper band, hinting at possible short-term resistance. The four-hour chart confirms this consolidation, with silver holding above key support at $36.05 and encountering resistance near $36.90.
The MACD on this timeframe shows a slight bullish crossover but lacks strong momentum. The RSI at 57 points to mild bullishness without excess. Volumes in futures and spot markets remain robust.
No major ETF inflows or outflows have been reported, and physical market premiums are steady, indicating orderly trading and no signs of panic buying. Macroeconomic factors continue to shape silver's path.
The U.S. dollar's recent weakness, linked to trade policy uncertainty and anticipated Federal Reserve rate cuts, has supported silver. However, any dollar rebound or further easing of geopolitical risks could limit upside in the short term.
In summary, silver's price action over the past 24 hours reflects a market balancing strong industrial demand and chronic supply shortages against shifting investor sentiment. Technical indicators show a consolidation phase within a broader uptrend.
The market's next move will depend on the interplay between macroeconomic signals, industrial consumption, and the pace of mine supply recovery. Silver remains a focal point for both industrial users and investors seeking tangible assets amid ongoing global uncertainty.
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