Silver to continue growth despite short-term correction

Silver prices have reached a 13-year high above $35 per ounce, showing significant growth. On Monday, June 9, opening prices were at $36.417. This surge is being fueled by macroeconomic uncertainty, a weakening US dollar, and increased investor and industrial demand.

The silver market is also bolstered by a structural supply deficit that has persisted for four consecutive years. According to the Silver Institute, global silver supply lagged behind demand by 15% in 2024, with a similar deficit forecast for the current year. Strong industrial demand, particularly in solar panel manufacturing, complements investor interest in the metal. These factors create favorable conditions for further price growth.

The macroeconomic situation also plays an important role. US labor market data indicates a slowdown in economic activity, yet the Fed maintains a wait-and-see stance despite Trump's calls for lower rates. Market participants expect the first rate cut in September, which could provide additional support for precious metals. Moreover, concerns about long-term inflation are growing amid rising US public debt and increased spending under the budget bill. These conditions create an ideal environment for investing in safe-haven assets, such as silver.

Technical analysis of silver indicates a consistent upward trend, bolstered by robust buying momentum. Prices are holding steady above key support levels, such as the EMA(20) at 34.048 and the EMA(50) at 33.257. This suggests that bullish sentiment remains intact. The On Balance Volume (OBV) dynamic confirms the strength of the current upward movement. However, the present RSI value of 79 signals that the market is overbought, increasing the likelihood of a correction in the near future.

Additionally, the high volatility of silver should be noted, as it could lead to sharp corrections amid geopolitical or economic changes.

Prices are approaching an important resistance level near 37. If this threshold is surpassed, the next target will be 38. At the same time, approaching this level increases the likelihood of a rebound, especially if buyers start taking profits. The key support is at 34; a break below this level could trigger a decline to the next support at 33.253.

Current recommendation:

Buy during correction in the range of 34–36. Take profit — 37,800. Stop loss — 34.