Silver stalls after 3-day rally as dollar strength and waning volume weigh on price
Silver tests key resistance zone
Silver opened the second week of June on strong bullish footing, extending its upward trajectory into a third consecutive daily gain. Price climbed to an intraday high of $36.88, brushing against the key psychological pivot near $37. That rally continues to align with the broader trend from late May, where silver has been climbing steadily toward its highest level since 2011. However, there are emerging signals that the current momentum may be entering a short-term cooling phase.
• Silver hits $36.88 intraday before falling 1.2% during Tuesday’s European session
• Daily RSI enters overbought zone as profit-taking kicks in following a 10.6% June gain
• Dollar strength on U.S.-China trade optimism adds pressure to silver short-term
Despite the bullish daily closes across the past three trading days, volume has been declining accordingly. Monday’s price gain was not supported by increasing trade activity, often a red flag when assessing the sustainability of a rally. The lack of volume conviction was followed by today’s setback. As of the European session on Tuesday, silver is down 1.2%, pulling back to a low at $36.30. That pullback trims June’s overall gain to 10.6%.
Silver price dynamics (Nov 2024 - June 2025). Source: TradingView
One technical element contributing to today’s decline is the RSI on the daily chart, which has entered overbought territory. This suggests that the market may be reacting to overextended bullish conditions, prompting some profit-taking after the recent three-day run. Still, RSI by itself does not invalidate the prevailing bullish trend unless accompanied by stronger reversal signals, which are currently absent.
Silver eyes $37.50 next only if greenback reverses recent strength
The broader market environment also played a role in today's pullback. The U.S. dollar has strengthened moderately following optimism around extended trade negotiations between the U.S. and China. Investors welcomed the possibility of eased semiconductor restrictions, pushing U.S. chip stocks higher on Monday and creating light demand for the dollar. While gains in the greenback are still limited, the short-term lift has applied some pressure on dollar-denominated commodities such as silver.
Looking ahead, silver’s medium-term outlook stays tilted to the upside so long as price holds above the $36 zone and no significant reversal patterns develop. The next major resistance lies near $37.50, which marks the 2012 high and a 14-year milestone. If bullish momentum returns alongside stronger volume and dollar strength fades, silver could attempt to break that ceiling in the coming sessions.
Silver’s uptrend pauses below $37 while June’s gain trims to 10.6% on European session drop.
Silver broke above last week's peak after gaining 9% last week as dollar weakness lifted buying interest. Price hit $36.40 before easing slightly while staying above support from its breakout zone.
