After the silver price had only moved upwards in recent days, the $39 per ounce mark proved to be stronger resistance – for now. Analysts believe the precious metal still has more than enough momentum to take on its all-time highs again.
The metal, which is also in high demand in industry, temporarily reached almost its highest level in 14 years, but then came under pressure. Currently, an ounce of silver still costs $38.29, and according to a Kitco News report, analysts at Solomon Global see several positive factors for the metal, which in their view support higher silver prices.
The experts assume that the silver price will continue its rise in the short term and test the psychological resistance level of $40 per ounce. Subsequently, it was further stated, previous monthly highs of $43.35 and $44.24 per ounce from 2011 are likely to come into play.
Industrial Demand Remains Solid Support for Silver
Solomon Global pointed out that industrial demand represents solid, fundamental support for gold’s little brother. However, the recent rally is attributable to silver’s role as a monetary metal.
Because, according to the analysts, currency devaluation typically drives investors into tangible assets, and gold and silver have benefited from this trend. In their view, the weakness of the US dollar results from ongoing concerns about persistent inflation in the US due to planned tariff policies and other political measures. This has led to a renewed increase in demand for assets like precious metals, which are considered safe havens. And silver is increasingly being used for this purpose.
Silver Likely to Benefit from Changes in US Monetary Policy
At the same time, according to Solomon Global, silver will benefit from an impending change in US monetary policy. While markets are not pricing in interest rate cuts for the current month, expectations are high that the Fed will begin lowering the key interest rate in September. And should there be a significant drop in interest rates, the analysts continued, this environment would be even more positive for a whole range of precious metals.
Because low interest rates would reduce the holding costs for assets like silver and gold, which do not yield returns, potentially allowing prices to rise significantly. Should the fundamental environment remain unchanged, Solomon Global further explained, silver is in a good position to resume its impressive rally and reach its highest levels in years in the coming months.
Despite this very bullish forecast, analysts do not believe that silver will continue to significantly outperform gold. The short-term rise in the silver price above $39 per ounce has caused the gold-to-silver ratio to fall to 85.88, its lowest level since December 2024. The high was 107 in April.
