Trading at ~$36.72 per troy ounce, silver currently trades at levels last seen in early 2012. Up by over 9% in last week’s trading, global monetary policy expectations, a strong demand outlook, and continued safe-haven demand continue to benefit bullion pricing.
Silver (XAG/USD): Key Takeaways
- Consolidating in today’s session, silver continued to rally in yesterday’s session, achieving 13-year highs of around ~$36.90.
- While most predict rates will remain unchanged in the Federal Reserve’s upcoming decision, monetary easing outside of the United States in the EU and UK is adding to silver upside.
- While safe-haven demand remains a significant contributing factor to precious metal performance, a strong outlook on demand and a weaker dollar continue to boost precious metal pricing.
Silver (XAG/USD): Silver gains on monetary policy expectations
Despite the best efforts of a hawkish Fed, key interest rates are generally trending downward, with the ECB and BoE cutting in their most recent decisions. As a non-yielding asset, lower rates typically favour precious metals like silver, adding rationale to the recent rally.
Undeniably, the burning question remains when the Federal Reserve will join this trend, with fabled interest rate cuts always coming but never seeming to arrive.
CME FedWatch, CME Group 10/06/2024
Boasting unexpectedly robust jobs data in May, most predict rates will remain unchanged in their upcoming June 18th meeting, which will likely further sour relations between President Trump and Jerome Powell, with Trump recently renewing demands for lower rates, this time by a whole percentage point.
With current US labor market data somewhat vindicating current Fed policy, eyes now turn to upcoming inflation data later this week:
- Wednesday June 11th, US Consumer Price Index (CPI), 08:30 EDT
- Thursday June 12th, US Produce Price Index (PPI), 08:30 EDT
Any suggestion that inflation is continuing to cool, especially in light of recent tariffs, will increase rate cut bets, paving the way for further silver upside.
Silver (XAG/USD): Supply and demand dynamics bolster silver pricing
Fundamental to a gradual increase in precious metal pricing, global supply and demand dynamics underpin recent silver price performance.
With record industrial demand in 2024, and projected to reach new highs this year, demand for silver is expected to outweigh supply for the fifth consecutive year in 2025.
Silver supply & demand, The Silver Institute, 10/06/2025
This dynamic inherently bolsters pricing, especially when considering silver as a hedge against inflation.
Silver (XAGUSD) Technical analysis:
A chart showing the recent price action of XAGUSD. OANDA,TradingView, 10/06/2025
- For the first time since October 2024, the 14-day RSI rates current silver price action as ‘overbought’, suggesting a short-term retracement is likely before further upside can be achieved.
- All major moving averages, including the 10, 21, and 50-day, currently show a bullish directional bias, suggesting price is trending upwards in both the short and long term.
- If price can stabilise and stage a move higher, bulls will first look to break $37, with some resistance expected around ~$37.10.
