Silver Price Falls Below $36 After 13-Year High, Drops 2.5% as Geopolitics Heat Up
Silver fell to $35.58 on Wednesday after briefly hitting $37, a level not seen since February 2012. The industrial metal rose to a 13-year
Quick overview
- Silver prices fell to $35.58 after reaching a high of $37, influenced by profit-taking and geopolitical tensions.
- Institutional inflows into silver ETFs are slowing, with significant outflows indicating a shift in sentiment among investors.
- Technical indicators show a bearish outlook for silver, with prices breaking below key support levels and negative momentum signals.
- The short-term trend for silver appears downward unless prices can recover above $36.
Silver fell to $35.58 on Wednesday after briefly hitting $37, a level not seen since February 2012. The industrial metal rose to a 13-year high in early London trading before shedding 30 cents as profit-taking and a risk-off tone kicked in following rising geopolitical tensions.
The pullback came after President Trump confirmed US military involvement in Israeli strikes over Iran, tweeting that the US now has “complete and total control of the skies over Iran”. This escalation triggered a wave of caution across commodities as investors were hesitant to chase highs in uncertain times.
Silver’s 26.1% gain in 2025 is impressive but the speed of the recent rally has raised questions about sustainability especially as prices approach historical highs. To put this into perspective, silver went from $37 to $50 in just over a month in 2011. History doesn’t always repeat.
ETF Outflows Show Weakening Sentiment
Despite the price rise, institutional inflows into silver ETFs are starting to slow. The iShares Silver Trust (SLV) reversed its Monday inflow entirely and is now at 14,675 tonnes, still 55% of annual global mine supply but down from recent highs.
The Sprott Physical Silver Trust (PSLV) was also quiet with an 18-kilo change—6 sessions of no change after a 5.8% gain in 2025. These outflows suggest institutional players are taking profits as volatility picks up.
According to StoneX metals analyst Rhona O’Connell, “42% of this year’s ETF inflows have come in June” so the recent rally may be losing momentum as quickly as it gained.
Key ETF Insights:
- SLV down to 14,675 tonnes after reversal
- PSLV minimal change after big May inflows
- June ETF activity accounts for nearly half of 2025’s total inflows
Silver Technical Breakdown Triggers Bearish Outlook
From a charting perspective silver has broken below its trendline and key support at $36.43 and has a strong three black crows on the 2-hour chart—a signal that often precedes big sell-offs.
Price is below the 50-period EMA at $36.48 so the momentum has shifted. The MACD is deeply negative and there’s no bullish divergence or reversal signal. No hammer or bullish engulfing pattern near support so the bearish structure is still in place.
Silver Trade: Short below $35.60 is still a good trade. Target $35.29 and $34.86 with a stop above $36.43. Risk to reward is 1:2.
Bottom Line:
Silver has paused hard. With technicals breaking down, ETFs reversing and Middle East tensions rising the path of least resistance in the short term is down, especially if buyers can’t get back above $36.
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