9.8.25 - Silver rush of 2025

9.8.25 - Silver rush of 2025

Gold last traded at $3,641 an ounce. Silver at $41.32 an ounce.

Silver rush of 2025: 6 factors driving the rally towards a 14-year high -Economic Times

Silver prices climbed to $41.80 per ounce last Friday, marking the strongest level since 2011. This rally was driven by weak US jobs data, a softer US dollar, and lower real yields. Rising expectations of multiple Federal Reserve rate cuts boosted demand for non-yielding metals like silver. Both industrial uses and safe-haven buying combined to support this positive momentum in silver prices.

Industrial demand for silver is surging, driven by its essential use in solar panels, electric vehicles (EVs), and electronics. China's solar cell exports have soared by 70% in the first half of 2025, with India leading this growth. However, silver supply remains limited since most of it is produced as a byproduct of base metals mining. This tight supply has created a structural deficit expected to continue into 2025 and beyond, supporting strong demand and higher prices.

The silver market remains in an uptrend with minor resistance at $41.47 per ounce. The next target is $44.22, which is the last long-term high. Support levels are seen at $39.78, with a stronger base at the 50-day moving average of $38.20. The market outlook is cautiously bullish as long as the price stays above $38.20.