Silver prices (XAGUSD) had a strong move up last week and could be set to move higher this week.
XAGUSD – Daily Chart
Last week’s strength in the price of silver has the potential to test the upward trend again this week, ahead of the $40.00 level.
Silver prices rose with safe-haven demand after Donald Trump fired one of the Federal Reserve board members over allegations of property fraud. Some took the move as another attempt to sway the voting in favour of his rate cut beliefs. That risks removing the independence of the central bank.
Silver also has some key themes as a backdrop to the price gains. Ongoing supply deficits have been a persistent issue since silver recorded its seventh consecutive annual deficit in 2025. That mismatch has been building since 2016, with global mine supply shrinking by 7% in that period, according to The Silver Institute.
Another driver of price has been an industrial demand boom, as silver is a key ingredient for high-growth sectors such as solar power, electric vehicles, and electronics. Solar accounted for 17% of global silver demand in 2024, a figure that has tripled over the past decade.
The move higher has brought big inflows to the ETF sector, with net inflows of 95 million ounces, which also drags on the supply.
Citigroup has recently upgraded its short-term silver forecast to above $40/oz, citing the tightening supply issue. Deutsche Bank expects the commodity to reach $38 by year-end potentially. GSC Commodity Intelligence had risen to $50, driven by its critical role in energy transition technologies.
With all of these dynamics, a move higher through resistance could trigger a price squeeze in silver over the remainder of the year.
