Silver gains strength amid geopolitical tensions and industrial demand

Silver is trading near $36.40 per ounce, reaching its highest levels since 2012, supported by strong industrial demand, tight supply conditions, and ongoing geopolitical uncertainty.

Demand for silver continues to rise, driven by its critical role in solar panel manufacturing, electronics, and other technologies. These sectors now account for over half of global silver consumption. The silver market has faced structural deficits for five consecutive years.

Geopolitical tensions are further fueling interest in the metal. The escalating Middle East conflict has added significant market uncertainty, prompting investors to actively seek safe-haven assets, including silver.

At the same time, the dollar's recent strength has weighed on silver prices, as a stronger greenback makes the metal more expensive for foreign buyers. However, market participants expect the Federal Reserve to hold rates steady at its upcoming meeting, which could cap further dollar gains. Meanwhile, growing trade policy uncertainty continues to boost demand for precious metals as alternative assets.

The technical picture confirms an upward trend, with prices decisively breaking through the key $35 resistance level. While the RSI hovering near 70–80 suggests approaching overbought conditions, it doesn’t yet signal an imminent correction. The MACD indicator continues to support bullish momentum, with the widening gap between its main and signal lines reinforcing confidence in further price appreciation.

Support levels are positioned at $35.00 and $34.50, with immediate resistance at $38.00.

Based on the analysis, buying silver at current levels is recommended. Take profit could be set at the level of $37.80–38.00 per ounce. A Stop loss should be placed below $35.00. Geopolitical developments and Fed decisions will remain key factors to watch.