Silver Rally Enters Price Discovery as Buyers Defend $70 Zone

Silver has moved into a price-discovery phase after a sustained rally that has buyers defending the $70-per-ounce area. Continued ETF inflows, macro uncertainty and a softer U.S. dollar have supported demand for the metal, while real rates remain an important backdrop. Market participants cite both safe-haven and industrial drivers: investors seeking an inflation hedge and manufacturers that rely on silver for electronics and solar applications.

Technically, silver’s advance has pushed it above several short- and medium-term resistance levels. Volume has increased on rallies, suggesting conviction from buyers rather than a short-covering burst. Momentum indicators are bullish, though overbought readings in some timeframes raise the risk of near-term consolidation. Key support is now clustered beneath current levels, with $65–68 acting as the first major buffer and $60 a deeper defensive line for longer-term holders.

ETF flows into silver trusts have been a notable feature of the move. Products such as SLV (iShares Silver Trust) have recorded net inflows, reflecting renewed investor interest. Traders are watching central-bank commentary and U.S. rate expectations closely: any shift toward tighter policy or a resurgent dollar could sap momentum, while dovish surprises or weakening growth could accelerate the metal’s advance.

Analysts suggest a cautious, staged approach: buy-on-dips nearer support to manage risk, or use options strategies to capture upside while limiting downside exposure. For momentum traders, break-and-hold above $70 opens targets that could extend toward prior psychological and technical levels, though the path may include pullbacks and range-bound periods.

In summary, silver’s current run appears buyer-driven, with price discovery underway as markets reassess fundamentals and positioning. Short-term volatility is likely, and participants should monitor macro signals, ETF flows and volume-confirmation on moves to validate the sustainability of the rally.