The 10-Year U.S. Treasury yield pulled back today and that gave silver a second reason to move. Silver carries no yield. When rates climb, the argument for holding it disappears fast. When rates ease even slightly, that argument comes back just enough to attract buyers who were sitting on the sideline. Spot Gold (XAUUSD) is also firmer today and the metals complex is moving together. That combination is behind what you’re seeing in silver right now.
The Supply Picture Has Not Changed
Spot Silver (XAGUSD) is near $76, holding well above the March lows after a sharp correction from the January peak above $121. The supply deficit is still in place. This is the sixth straight year the market is running short and the gap is projected to widen. Inventories in London and Shanghai remain under pressure and Chinese export controls are keeping physical supply tight in Western markets. That backdrop does not go away because crude pulls back for one session.
Industrial Demand Is Still the Floor
Solar, electric vehicles, electronics and AI infrastructure are all pulling on silver simultaneously. Industrial consumption is the backbone of this market and none of those demand drivers are slowing down. Investment demand is adding to it. With Spot Gold (XAUUSD) elevated, silver is the cheaper entry into the metals trade and buyers know it.
What I’m Watching
The 50-day moving average at $78.33 is the level this rally has to clear. It failed there mid-month and sellers came right back in. I’m watching whether this time the buying volume shows up to back the move. If it does, $83.06 to $83.61 opens up and that becomes the trigger for a run toward $91.34 to $98.49. If the 50-day holds as resistance again, the short-term retracement zone at $72.03 to $69.43 is the next test. That is the trade right now.
More Information in our Economic Calendar.