Silver Price Eyes $35 as Supply Squeeze, Trade Jitters, and Chart Signals Align

Silver is stabilizing at $34.53 as the market absorbs fresh geopolitical stress and macroeconomic concerns. With renewed tension between the US and China—President Trump recently accused Beijing of breaking a trade deal—investors are flocking to traditional safe-haven assets like silver.

Markets are also on edge ahead of US labor data and a potential high-stakes phone call between Trump and President Xi Jinping. Meanwhile the OECD’s global growth downgrade is fueling broader risk aversion, keeping precious metals supported.

Despite a small bounce in the US dollar, silver’s long-term fundamentals remain bullish. The market is on track for its 5th consecutive annual supply deficit in 2025 as industrial usage surges.

Demand Outlook: Industrial Surge Offsets Jewelry Drop

Latest industry projections suggest global silver demand will be around 1.2 billion ounces in 2025. Industrial fabrication is expected to grow 3% and go above 700 million ounces for the first time—driven by silver’s increasing use in green energy, electronics and solar.

Other segments look mixed:

• Jewelry and silverware demand will decline 6% due to high local prices in India.

• Coin and bar investment will rebound 7% after last year’s 22% drop as investor appetite for hard assets recovers.

This demand-supply dynamic continues to underpin silver’s long-term value story.

Silver Technical Setup: Bullish but Cautious

Technically silver (XAG/USD) is consolidating just below $34.78 resistance which is the 0% Fibonacci retracement of the $32.98-$34.78 rally. Price action has slowed and is forming narrow candles around $34.53—a sign of buyer hesitation.

On the 2-hour chart:

• A clear trendline and higher lows show sustained bullish structure.

• The 50-period EMA at $33.88 is still intact as support.

• The recent rally was backed by a bullish engulfing pattern followed by a three white soldiers formation—both bullish continuation signals.

But MACD momentum is weakening with red histogram bars and a bearish crossover. We need a breakout to confirm.

• Enter: Above $34.78 on a strong candle

• Targets: $35.03 and $35.30

• Stop: Below $34.09