The price of silver is sprinting to yet another record, surging approximately $2.00 (3.40%) on the day. This latest move caps a historic run for the metal, which is now up over 120% year-to-date.
Silver’s explosive move to over $64.00 per ounce in 2025 is being driven by a “perfect storm” of five fundamental factors:
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Chronic Supply Deficit: For the fifth consecutive year, global demand has outpaced supply. Mining output remains flat while above-ground stockpiles have plummeted to critical lows.
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Explosive Industrial Demand: The “green” revolution is draining physical inventory. New solar panel technologies, EVs, and AI data centers are consuming record amounts of silver for its superior electrical conductivity.
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Strategic Stockpiling in Asia: China and India have shifted from “just-in-time” buying to aggressive stockpiling. India is importing record volumes, while Chinese industry secures reserves to prevent shortages.
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The “Gold Effect”: With gold breaking $3,000/oz, silver has surged as a more affordable “catch-up” trade and a hard-asset hedge against sticky inflation and new tariffs.
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Technical Breakout: Smashing through the historic $50 resistance level triggered a wave of speculative and algorithmic buying, creating a self-reinforcing price loop.
Silver Technical Analysis: Bulls in Total Control
Looking at the daily chart, the technical structure remains decisively bullish. The buyers established a strong base during the correction in October and November, where price lows held against a key trend line. This gave the market the confidence to push higher.
After testing the October high near $54.46 in mid-November, the price broke out on November 28th and raced toward the $60.00 level. Following an initial peak near $59.35, the rally extended above the psychological $60.00 mark on Tuesday.
Crucially, the price also shattered the 161.8% Fibonacci extension at $59.97, pouring fuel on the bullish fire. The momentum over the last three days has been relentless:
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Tuesday Low: $57.61
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Thursday High: $64.30
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3-Day Move: +$6.70 (+11.63%)
Key Levels to Watch:
Technically, the price has now breached the 200.0% Fibonacci extension at $63.37. This level now acts as immediate risk support for aggressive traders, with the $60.00 level providing major support for conservative positions. A move below these levels could signal corrective action. On the topside, the market is in “blue sky” territory on any break above today’s high of $64.30.
Gold Analysis: Breaking Resistance, Eyeing All-Time Highs
Gold is also enjoying a strong session, currently up $45.50 (1.08%) trading at $4,273.80.
While Silver has outperformed in percentage terms this year, Gold’s rally is nothing short of historic. The yellow metal is up $1,650 (62.87%) year-to-date and sits just $110 away from its all-time high of $4,381.48.
Fundamental Drivers for Gold:
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US Debt & Debasement: With US debt passing $38 trillion, investors view Treasuries as increasingly risky, buying gold to hedge against inevitable money printing and currency dilution.
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Central Bank Buying: Nations like China and India are aggressively swapping US dollars for gold to “sanction-proof” their reserves, creating a massive price floor.
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The Fed’s “Stealth QE”: The Federal Reserve continues to cut rates despite sticky inflation, reducing the opportunity cost of holding gold vs. bonds.
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Geopolitics: Ongoing trade wars and conflicts in the Middle East and Europe have built a permanent “fear premium” into the price.
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Western FOMO: After sitting out the early rally, Western institutional and retail investors have flooded back into Gold ETFs, chasing performance and safety.
Gold Technical Outlook
Technically, Gold is breaking out of a consolidation phase. The price is pushing above the recent November and December highs located between $4,243.92 and $4,262.32.
Today’s session high reached $4,285.98, confirming the breakout
