Silver prices have extended their recent rebound, reclaiming the $66.00 level and trading near $67.00 after a period of consolidation. The move follows a shift in market focus away from geopolitical negotiation headlines toward concrete developments, reducing day-to-day volatility in the precious metals complex.
The decline in U.S. Treasury yields has provided additional support. Following the announcement of a doubling in purchases of longer-dated securities, the 10-year Treasury yield fell from 4.725% to 4.638%, reducing the opportunity cost of holding non-yielding assets such as silver.
Supply-side dynamics remain constructive. One of the world’s largest silver producers reported second-quarter output of 6.47 million ounces, a 27% year-over-year increase, while first-half production reached 12.9 million ounces—an 8% gain and within the upper range of the company’s guidance of 12.15 to 13.15 million ounces for the period. Global minted coin sales rose 65% month-over-month in July to 486,000 ounces, an 8% increase from the prior year, though volumes remain well below the record levels of 976,000 ounces in March and 2.0 million ounces in February.
Demand indicators are improving. CME Group data shows futures trading volume in precious metals climbing since early August, with 69,000 positions recorded on August 18 compared to 42,600 on August 14. Options activity, however, remains subdued at fewer than 4,900 contracts, below the monthly average of 7,800.
Technical indicators suggest the recovery remains in its early stages. On the daily chart, silver has yet to break above the upper boundary of a multi-month downward range, a move the analysis suggests would be required to confirm a sustainable uptrend. Short-term moving averages remain positively aligned, while the momentum indicator continues to print larger positive bars, signaling building buying pressure.
According to the analysis, key resistance levels are seen at $68.50 and $77.70, with support at $63.40 and $55.00. Trading scenarios outlined by the analysis include a long entry on a sustained move above $68.50 targeting $77.70 with a stop-loss at $65.00, or a short entry below $63.40 targeting $55.00 with a stop-loss at $67.00. The analysis emphasizes that a break above $68.50 would be required to validate the recovery before it can be classified as a confirmed trend.
