Silver is approaching a critical support zone as its “dual role” as a monetary and industrial asset continues to diverge. Tightening expectations on global central banks, driven by the energy shock, are weighing on its monetary side, leaving the 64 support zone increasingly vulnerable. While industrial demand and persistent physical deficit may offer a floor near 60, the risk is that broader liquidation and “technical forces” could drive a deeper correction toward 50.
The dominant driver at this stage is the repricing of global monetary conditions. Elevated oil prices are lifting inflation expectations, prompting markets to anticipate a more aggressive policy response from central banks. Rising yields and a higher rate outlook are eroding the appeal of non-yielding assets, placing sustained pressure on Silver.
This marks a clear shift in market dynamics. Earlier gains were supported by strong physical demand and tightening supply conditions, but price action is now increasingly dictated by macro positioning. Investors are adjusting exposure as policy expectations evolve, with monetary factors outweighing structural fundamentals in the near term.
Technically, Silver is now pressing 64 support cluster, which aligns with 61.8% retracement of 28.28 (2025 low) to 121.83 at 64.01. Given the current downward momentum, this level is at risk of giving way, especially if yields continue to rise and risk sentiment deteriorates further.
A break below 64 would shift focus to 60 level, a key psychological and technical support. This zone is where Silver’s “industrial side” may begin to assert itself more clearly, as lower prices attract demand from sectors such as solar and advanced manufacturing.
The physical backdrop remains supportive. The market is facing its sixth consecutive year of supply deficit, and deeper price declines are likely to be met with strategic buying from industrial users. This dynamic could help stabilize prices in the 60 area, at least initially. A strong bounce from 60, followed by break of 74.52 resistance, will be an important sign of stabilization.
However, the risk is that financial flows overwhelm physical demand. In a period of elevated volatility, liquidation driven by margin calls and ETF outflows can dominate price action. In such conditions, Silver may decouple from its underlying fundamentals as “technical forces” take precedence.
If 60 fails to hold, the correction could extend toward the 48.60–54.44 zone, corresponding to the prior Wave 4 consolidation of the up trend from 28.28 to 121.83. That coincides with 76.4% retracement of 28.28 to 121.83 at 50.35.
