Silver price forecast: Analysts predict recovery to $36–$38 in 2025
Silver ends 2024 up 21%, faces near-term pressure but 2025 outlook targets $36–$38
Silver's strong performance in 2024, up over 21% year-to-date, has been overshadowed by recent price weakness, raising questions about its near-term outlook.
Despite outperforming other precious metals like platinum and palladium, which are set for annual losses, silver has faced notable price declines in the last three months. A series of macroeconomic factors, including a stronger U.S. dollar and rising bond yields, have weighed heavily on silver's price momentum.
Silver price dynamics (November-December 2024). Source: TradingView.
After reaching a three-month low of $28.80 on December 19, silver dipped again by 2% to test the same level on December 30, 2024. This price action occurred despite the typically low trading volumes during the holiday season, highlighting the persistent downward pressure on the metal. Silver's recent struggle is largely tied to the strength of the U.S. dollar, which has gained traction over the past few months. As commodities priced in dollars become more expensive for foreign investors, silver has suffered from reduced demand, reflecting the well-known inverse relationship between the dollar and precious metal prices.
Despite the recent downturn, analysts remain optimistic about silver's future. UBS forecasts a price recovery in 2025, with silver expected to rise to between $36 and $38 per ounce. This outlook is supported by expectations of lower U.S. real yields and stronger global industrial production, which could increase demand for silver, particularly in the manufacturing sector.
In the near term, silver faces significant resistance levels at $29.65 and the 100 EMA at $30.00, where any rallies are likely to encounter selling pressure. However, the metal is not entirely out of favor, with some key indicators showing potential for a rebound. The Relative Strength Index (RSI) is beginning to recover from an oversold position, suggesting that silver could find some support and start building a base for future gains. Hence, while silver's recent performance has been disappointing, its longer-term outlook remains positive.
Uncertainties over industrial demand, particularly from China’s solar panel sector, had dampened Silver price potential. Its price range was confined to a narrow range of $29.40 to $29.86 for five days.
