Silver prices continued their upward trajectory on Monday, surging by 2% and edging closer to the significant $37 per ounce level. This marks yet another session of gains for the white metal, which has been on a remarkable rally in recent weeks amid strong investor interest, macroeconomic shifts, and rising demand in both industrial and investment sectors.
Recent Price Performance
On Monday, silver futures climbed nearly 2%, settling just shy of the $37 threshold—its highest level in over a decade. This follows a sustained bull run that has seen silver gain more than 30% year-to-date in 2025. The momentum is being driven by a combination of economic uncertainty, tightening supply, and its dual role as both a precious and industrial metal.
Factors Behind the Surge
1. Safe-Haven Demand
With global geopolitical tensions simmering and concerns over inflation and currency stability resurfacing, investors have increasingly turned to precious metals. While gold remains the traditional safe haven, silver has seen accelerated buying due to its lower price point and high return potential.
2. Industrial Usage
Silver’s extensive use in green technologies—especially solar panels, electric vehicles (EVs), and electronics—has buoyed demand. As countries ramp up clean energy investments, silver consumption is rising. Analysts note that industrial demand for silver could hit record highs this year, contributing to tight supply conditions.
3. Investment Inflows
Exchange-traded funds (ETFs) focused on silver have witnessed robust inflows, indicating a surge in retail and institutional investor interest. Futures markets have also seen a rise in open interest, reflecting broader confidence in the continued upward momentum of silver prices.
4. Weakened Dollar and Fed Signals
The U.S. dollar has shown signs of weakness in recent weeks, adding further fuel to the silver rally. Additionally, signals from the U.S. Federal Reserve indicating a possible pause or moderation in interest rate hikes have supported non-yielding assets like silver.
Market Reactions and Forecasts
Market analysts and bullion traders are now eyeing the $37 mark as a key psychological resistance level. A clean breakout above this could push prices toward $40 per ounce, a level not seen since the 2011 commodity super-cycle.
Commodity strategists have started to revise their forecasts for the second half of 2025, citing tight physical markets and bullish technical indicators. Some forecasts now project an average silver price of $38–$40 for Q3 if current trends persist.