Silver Prices Surge on Supply Deficit and Trade Uncertainty – What’s Next?
Silver prices have skyrocketed this year, driven by trade policy uncertainty and geopolitical tensions. But beyond the headlines, fundamental factors suggest that the rally may continue.
The Silver Institute forecasts another year of supply shortages in 2025, despite potential shifts in U.S. energy policy. While trade wars and energy policies add uncertainty, the key drivers for silver prices remain demand and Federal Reserve actions.
From a technical standpoint, silver is currently testing a critical resistance level near $33 per ounce. A breakout above this level could pave the way for a retest of long-term highs.
Analysis:
– Global silver production has struggled to recover, leading to a projected supply deficit of around 250 million ounces.
– U.S. energy policy and trade disputes could impact silver demand, but supply shocks or renewed industrial demand may offset risks.
– Physical silver flows have shifted towards U.S. exchanges, potentially impacting market liquidity and pricing dynamics.
– Silver prices are eyeing a breakout above $33 per ounce, with potential targets near $34.60 and long-term highs near $35 per ounce.
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