A bearish Head and Shoulders pattern is forming on the silver daily chart. The pattern is confirmed once price breaches neckline support, which is at around $35.20.
On June 18 silver reached it’s highest levels since February 2012. Prior to that, during the 2011-2012 bull run, it reached a high of over $49 per ounce.
The silver market has delivered outstanding returns for investors in 2025, with prices rising approximately 25% year-to-date.
Silver’s strong 2025 performance has been driven by its dual role as a precious and industrial metal. Industrial demand, especially from solar energy, electronics, and EVs, has combined with persistent supply constraints to keep the market in deficit.
However, various forces are weighing on the white metal, potentially driving prices lower.
After reaching a 13-year high last week, investors locked in profits, triggering a pullback.
The ceasefire between Israel and Iran prompted a shift back toward risk assets, causing investors to unwind positions in safe-haven metals.
Recent reports of signing of a trade deal between the U.S. and China has boosted stock markets to new highs, encouraging investors to move away from precious metals like silver toward equities.
Not least, the Federal Reserve’s decision to maintain interest rates at a relatively high range (4.25-4.5%) signals a cautious stance on monetary easing. Higher interest rates increase the opportunity cost of holding non-yielding assets like silver, putting downward pressure on prices.
Potential key support levels include the prior high from October 2024 of $34.85 and the 200-period simple moving average, currently at $32.25. Resistance overhead stands at the recent high of $37.30 and above that the major psych level of $40.