Silver prices welcomed the news of a US-Iran peace agreement, rising by more than 3%. The boost was largely driven by declining energy costs—one of the key drivers of accelerating inflation. For now, these concerns have taken a back seat.
On the fundamental side, bullion has several tailwinds, including a weaker dollar and lower US Treasury yields. If market participants begin to price in a rate cut by the Federal Reserve (Fed)---or at least the regulator’s less hawkish stance—silver could rally, along with other precious metals. Moreover, unlike gold, this asset benefits from strong industrial demand. It is widely used in solar panel production, electronics, EV manufacturing, and energy infrastructure. In other words, its consumption is fueled not only by investment flows but also by actual demand in the sector. Notably, the silver market continues to grapple with a structural deficit. So, even if industrial needs decline in a few segments, the overall supply is likely to remain insufficient, keeping prices supported.
Now, let’s take a look at the technical setup. Last week, quotes reached a local low of $61.50 before reversing upward and breaking through the $66.20 resistance level. The precious metal is currently trading above $70.00, with a good chance of surpassing the next significant barrier at $77.00.
The ultimate recommendation is to buy silver at the current price, targeting $77.00 within one month. To mitigate the risk of adverse market movements, place a Stop Loss order just below support, at $66.2.
This content is for informational purposes only and is not intended to be investing advice.
