Silver prices started to rebound toward 33.6

Last week, silver prices managed to rebound from monthly lows, gaining almost 2.5%. The 32 level once again proved to be strong support, from which the metal's price is developing a new upward wave. The short-term target for silver buyers will be 33.6, matching the late April highs. If the positive news backdrop persists, this level could be reached in the coming days.

Trade negotiations between the US and China remain the primary focus in financial markets. Signs of easing tensions have already triggered a noticeable decline in gold prices, while silver is demonstrating much greater resilience. As a result, the gold-to-silver ratio has fallen below the psychologically important 100 level, potentially signaling a significant shift of investments into silver. The normalization of trade relations benefits industrial demand, which accounts for approximately 50% of global silver consumption.

According to Florian Grummes, director of Midas Touch Consulting, successful negotiations between US and Chinese officials could trigger a strong rally in the silver market. Silver prices have a good chance of moving into the $40−50 per ounce range. Bob Haberkorn of RJO Futures expects prices to reach $40 by summer, with the $50 level potentially being achieved by fall.

Analysts' silver forecast does not yet indicate a clearly bullish stance. According to Reuters, experts maintain their 2025 price target at $33.10 per ounce, although next year’s estimate has been revised upward from $33.45 to $34.58. Historically, when the gold-to-silver ratio peaks, the following year tends to favor the white metal. For instance, since the 2008 crisis, silver has gained 81% compared to gold's 44% rise. During the COVID-19 pandemic, the disparity was even more pronounced: 73% versus 8%, respectively.

Technical indicators on the silver chart have moved into neutral territory, presenting no obstacle to the price advancing toward the 33.6 level.

Consider the following trading strategy:

Buy silver at the current price. Take profit – 33.6. Stop loss – 32.