Silver experienced a notable increase of 2.86% yesterday, reaching an unprecedented level of 1,33,555. This movement was largely influenced by heightened safe-haven demand and anticipations of additional rate cuts by the U.S. Federal Reserve. The recent 25 basis points reduction by the Federal Reserve, marking its first adjustment since December, has strengthened expectations for further cuts this year.
Investors are now closely monitoring forthcoming Fed speeches and the U.S. core PCE data scheduled for Friday in search of new policy indications. Expectations of monetary easing, alongside strong industrial demand, have provided substantial support for silver prices. On the fundamentals side, silver’s role in the solar, electric vehicle, and electronics sectors remains a critical factor supporting demand. Investment in exchange-traded products has experienced a significant increase, with net inflows reaching 95 million ounces in the first half of 2025, already exceeding the total for the previous year.
As of the end of June, global ETP holdings reached 1.13 billion ounces, with a valuation exceeding $40 billion, marking unprecedented levels. In the first half, Indian retail investment experienced a 7% year-over-year increase, bolstered by robust price expectations, whereas European demand persisted in its recovery from the lows observed in 2022. On a global scale, the silver deficit is anticipated to decrease by 21%, reaching 117.6 million ounces in 2025. This shift is attributed to a 2% increase in supply alongside a 1% decline in demand, while industrial usage continues to hold firm at historically elevated levels.
From a technical perspective, silver is experiencing renewed buying interest, evidenced by a 6.45% increase in open interest to 18,612, coinciding with a price rise of 3,717. Support is positioned at 1,31,595, with additional downside risk extending towards 1,29,630. Resistance is currently identified at 1,34,590, and a breakout beyond this level may lead to further gains towards 1,35,620.