Silver prices are now moving within the $78–$82.5 range. The lower boundary appears to be solid support. Quotes have tested this level three times over the past month, and each time, a rebound to the channel’s upper limit (or even beyond) has followed. This dynamic is a sign of steady demand at the $78 level, which could serve as a short-term floor, considering current conditions.
Fundamentally, the strength of this support is linked to the burning issue of a structural deficit in the silver market and hefty industrial demand.
Additionally, monitor today’s Federal Reserve (Fed) interest rate decision. If the outcome of the meeting aligns with the consensus forecast—meaning that borrowing costs remain unchanged and Chair Jerome Powell strikes a tone of cautious optimism—silver might thrive. However, investors are concerned that the Fed’s head could be more hawkish than hoped, as soaring oil prices amid the Middle East crisis could boost US inflation expectations. A neutral or positive outcome is likely to soften the blow from this key headwind. In this case, the $78 support would be set in stone, and the likelihood of a rebound to the upper limit of the channel would rise accordingly.
The ultimate recommendation is to buy silver at the current price, targeting $82.5 within the next one to two weeks. To mitigate risk, place a Stop Loss order just below the support level, or around $77.5, in case the market plays against us.
This content is for informational purposes only and is not intended to be investing advice.
