Silver surpassed its important resistance level at $33.45 earlier this week. Momentum currently supports a retest of $34.24, with $34.87 being $34.87 as the next upside target. If prices soften, strong support is expected between $32.53 and $31.81, but the 50-day moving average is close to $32.15, and another layer of technical support will be added. Gold Rally adds reliability to the silver breakout and offers additional confirmations to traders looking at both markets.
Physical supply and demand crunch adds fuel
The bullish case of silver is also supported by structural factors. Demand from the solar, EV and green energy sectors remains solid, but the market has been steadily increasing the pace of a global supply deficit for five consecutive times in 2025. The ETF inflow is beginning to recover, and physical demand is resilient. These supply and demand imbalances have seen some analysts seek long-term moves of over $40, with bullish extremes growing from $75-100 under the true squeeze.
Outlook: Silver bias tests positive for gold and provides macro tail fin
The short-term silver setup is supported by technical strength, physical demand and bullish macro overlays. Gold continues to lock in sentiment with all-time highs and central bank support, while Silver offers more headroom on a relative basis. Unless Friday's PCE data is unexpectedly hot, the current environment continues to favor both metals (additional upside down in both silver-driven metals).
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