Silver is holding just above the $61 oz level, stabilizing after a minor relief bounce from a multi-week low of roughly $60. Prices experienced swings over the prior weeks. After peaking near $71.21 on August 28, silver underwent a sharp corrective wave (tracing an Elliott Wave zigzag pattern), pulling back nearly 10–15% from its late-summer highs.
Immediate Support: $60.00 – $60.30, with deeper downside tracking toward $59.35 and $56.60 if selling pressure resumes. Resistance: $61.80 – $62.45. A sustained break above this zone is required to negate the near-term bearish correction structure.
Persistent energy-driven inflation readings have pushed multi-decade highs in US Treasury yields (with the 10-year hovering near 5.3% and 30-year yields topping 5.6%). Expectations of further Federal Reserve tightening or a more gradual easing path increase the opportunity cost of holding non-yielding precious metals like silver. The US Dollar maintained resilience, counterbalancing some safe-haven bullion flows and capping aggressive upside rallies.
Silver continues to maintain high demand structural backstops due to its critical role in green energy transitions (photovoltaic/solar technology) and electrical electronics. However, projections indicate some cooling in short-term photovoltaic sector tightness as markets balance out. Institutional interest remains split. While physical tightness has eased from August peaks, major institutional players (such as J.P. Morgan Global Research) note robust long-term positioning, with clients targeting broader stretch goals ($90 calls) within the wider precious metals landscape.
Middle East & Energy Tensions: Ongoing US-Iran standoffs, naval blockages around the Strait of Hormuz, and broader energy infrastructure volatility continue to add safe-haven premiums to precious metals, though they concurrently stoke inflation fears that drive up bond yields.
Short-term indicators (such as the RSI recovering from oversold regions near 28) show that immediate selling pressure has eased; the broader post-peak correction trend requires sustained buying volume above key overhead resistance to flip back to a bullish expansion. Major financial institutions (like J.P. Morgan) maintain a constructive view for the asset class over the remainder of the year, projecting fourth-quarter stabilization and annual averages elevated to historical norms, reliant on how central bank policies and industrial demand interact.
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks the financial markets with over 20 years of working experience in investment trading
www.fxleaders.com