Silver futures slide 0.1% as global markets face narrow-range trading
Silver ends 2024 near $29.65 resistance, eyes $40 targets in 2025 amid supply concerns
Silver prices are ending 2024 with mixed signals, leaving investors keenly watching key levels for a clearer direction. Last week, silver prices dropped to a 14-week low of $28.75 per ounce after breaking below the critical $29.65 support level.
Although the decline was significant, the metal briefly rebounded, retesting $29.65, which now acts as resistance. Throughout the holiday trading week, volatility remained subdued, with prices fluctuating within a narrow 1.5% range near the $29.65 mark.
Silver price dynamics (September-December 2024). Source: TradingView.
Silver price outlook: Supply issues could propel prices above $40 in 2025
Prices in India saw a slight increase, rising approximately by $6 to $1,095 per kilogram (roughly $34.18 per ounce), while global markets showed muted performance. In the futures market, silver contracts for March delivery dipped 0.1% to $1,078.97 per kilogram, hinting at potential challenges ahead.
On the hourly chart, RSI hovered slightly below the 50 level, reflecting sideways momentum. The inability to break above $29.65 has kept silver under pressure, but a decisive move beyond this resistance could pave the way for a bullish recovery. Conversely, failure to hold current levels might open the door to fresh lows.
Looking ahead, analysts predict that silver’s industrial demand and supply challenges may support higher prices. Key resistance levels are identified around $27.50–$28.00 per ounce, with potential targets at $40 and $43 domestically. As the year transitions into 2025, investors are advised to watch for dips as potential buying opportunities, especially if prices can reclaim and hold above $29.65 in the short term.
Easing inflation data and shifting Federal Reserve rate expectations provided a supportive backdrop for silver. Technically, silver prices rebounded sharply after the 250-day EMA offered strong support.
