International News
Silver Could Fall Further After Latest Slump, Say Analysts
Silver’s Breakneck 2025 Rally Has Created The Conditions For Demand Destruction
Silver’s breakneck 2025 rally has created the conditions for demand destruction among buyers of the precious metal, according to analysts, who say prices could fall even further from last year’s highs.
The metal’s wide range of industrial purposes means it is more sensitive to the economic cycle than gold, as an essential component in a variety of goods, from computers and mobile phones to solar panels and cars.
Silver price gains of around 140% last year have been deterring buyers in various industries and its elevated price levels are beginning to weigh on demand, UBS said in a note published on May 22.
Unlike gold, which benefits from robust central bank buying, silver lacks this strategic demand anchor and remains absent from official sector reserves. As a result, silver is more vulnerable to shifts in private investment and industrial demand, and is likely to lag gold.
UBS believes the current investment case does not sufficiently reward investors for the associated volatility and, as such, it remains an “unappealing” position for them.
Prices have recovered ground since hitting a 2026 low of $67.60 on March 20, but remain well below levels prior to the Iran war.
Both spot silver and silver futures rose in May to trade at around $87 an ounce on May 14, before another selloff saw prices consolidate around the $75-78 mark over the past two weeks.
International News
Precious Metals Find Support On Ceasefire Optimism AUGMONT BULLION REPORT
Gold Is Trading At Y Oversold Levels Near The Critical Support Zone Of $4,300, Silver Testing Key Support In The $66–$67 Range
- Price Movement – Gold and silver are consolidating near key support levels as markets digest a fragile Israel-Iran ceasefire alongside mounting concerns over inflation and the prospect of further interest rate hikes.
- Geopolitical Developments – President Trump confirmed that both parties are pursuing an immediate ceasefire, with final negotiations advancing. Israel and Iran announced a mutual halt to hostilities following a direct appeal from Washington. However, Tehran cautioned that it reserves the right to resume strikes if Israeli operations against Hezbollah in Lebanon continue.
- Macro-economic Signals – CME FedWatch data shows markets now pricing a greater than 70% probability of a Fed rate hike by December. Investors are closely watching May’s U.S. CPI and PPI releases, due Wednesday, for clearer signals on the Fed’s policy trajectory. The European Central Bank is also widely expected to deliver a rate increase this week.
Technical Triggers
- Gold is currently trading at deeply oversold levels near the critical support zone of $4,300 (approximately Rs. 1,54,000). A technical rebound of 3–4% is anticipated from current levels, driven by bottom-fishing activity. However, a sustained break below this support would shift the near-term bias decisively lower, exposing the $4,000–$4,100 range (approximately Rs. 1,50,000–Rs. 1,51,500) as the next downside target.
- Silver is similarly oversold, testing key support in the $66–$67 range (approximately Rs. 2,40,000–Rs. 2,42,000). As with gold, a 3–4% technical recovery is the base case on dip-buying, but a confirmed sustainability below this support would accelerate selling pressure toward $60 (approximately Rs. 2,20,000) in the short term.
Support and Resistance
| International Gold Support Level International Gold Resistance Level Domestic Gold Support Level Domestic Gold Resistance Level | : $4300/oz : $4500/oz : Rs 154,000/10 gm : Rs 160,000/10 gm |
| International Silver Support Level International Silver Resistance Level Domestic Silver Support Level Domestic Silver Resistance Level | : $66/oz : $75/oz : Rs 240,000/kg : Rs 260,000/kg |
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