Silver: Consolidation expected below key resistance – OCBC

OCBC’s Christopher Wong sees Silver showing tentative stabilisation after heavy trading and persistent ETF outflows, with year‑to‑date ETF holdings down 9.2%. Hawkish Federal Reserve repricing keeps pressure on non‑yielding metals, and the bank expects near‑term price action to remain soggy, with consolidation likely as long as support at USD63/61 holds and resistance noted around USD69–75.

ETF outflows and yields cap upside

"Silver had traded with a heavy bias, with ETF demand no longer providing the same support. Bloomberg data showed silver ETFs cut holdings by 205,925 oz in the latest session and by 2.95mn oz last week, taking year-to-date net sales to 79.1mn oz, or a 9.2% decline in holdings."

"Hawkish Fed repricing has raised the hurdle for non-yielding metals, while persistent ETF outflows point to investor demand being pared back."

"While the medium-term deficit story remains intact, near-term price action may stay soggy unless US yields soften or ETF liquidation slows more clearly."

"Last seen at 65.50 levels. Mild bearish momentum on daily chart observed but decline in RSI shows tentative signs of slowing."

"These point to consolidation for now, so long support at 63, 61 levels (recent low) holds. Resistance at 69.40 (200 DMA), 70.5 (21 DMA) and 75.60 (50 DMA)."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)