Spot silver is currently trading around $57.50 per ounce, with physical supply deficits acting as a support level near $50. The demand for silver is driven by its use in solar panel manufacturing, electric vehicle growth, and the expanding power infrastructure for AI data centers. Despite long-term structural deficits, recent elevated prices have led to increased scrap recycling and industrial substitution, which are mitigating supply tightness.
The short-to-medium term outlook for silver remains bearish, with key technical indicators showing persistent negative momentum. As a non-yielding asset, silver is strongly influenced by U.S. Federal Reserve policy and Treasury yields. Sticky inflation readings have delayed aggressive rate cuts, keeping real yields elevated and putting downward pressure on precious metals.
The trend for silver is structurally bearish/corrective, with recent price bounces struggling to sustain gains. The Relative Strength Index (RSI) fluctuates in the 35-40 range, signaling persistent negative momentum, while the Moving Average Convergence Divergence (MACD) remains pinned in negative territory.