Silver has been a standout performer in 2025, driven by fundamentals similar to gold but with greater volatility. Its price remains supported by ongoing geopolitical tensions, weak US economic data, and expectations of a dovish Federal Reserve. The overall bullish momentum is intact, though traders should be mindful of key events this Friday that could pose risks.
On Friday, the US Non-Farm Payroll (NFP) report will provide fresh insight into the labour market. Unlike the previous report—which was clouded by government shutdown-related distortions—this data is expected to offer a clearer picture. Stronger-than-expected jobs figures may trigger a pullback in silver as market participants adjust expectations away from an imminent Fed rate cut. Conversely, weaker data would likely support further upside in silver prices.
In addition to the NFP, the US Supreme Court has scheduled Friday for an opinion that could impact tariffs imposed during the Trump administration. If the Court strikes down these tariffs, silver prices may decline as stagflation concerns ease. However, if the tariffs remain in place, this should have little immediate effect on silver, maintaining the current upward pressure.
Looking at the broader outlook, silver’s uptrend is expected to persist. The Federal Reserve’s dovish stance suggests real yields will remain low, creating a favourable environment for precious metals. Nevertheless, any short-term hawkish adjustments in interest rate expectations could temporarily weigh on the market.
Technical analysis on the daily chart shows that silver has recouped losses from last week’s selloff and reached all-time highs. Traders should watch for a possible double top formation. Sellers may emerge near these levels, targeting a pullback towards the 69.00 price area, while buyers will be looking for a breakout above these highs to extend the rally.
On the four-hour chart, an upward trendline supports the bullish momentum. A retracement to this trendline could attract buyers who use the line as a well-defined risk level, aiming for a push to new highs. Conversely, a break below this trendline might encourage sellers to target the 69.00 level.
The one-hour chart reveals that silver recently broke below its shorter-term upward trendline, signalling potential loss of momentum and indicating a larger pullback may be underway. Sellers capitalised on this break, aiming for the major trendline as a target. Buyers currently face mixed signals and will likely wait for a retracement to this major trendline or a decisive break above the all-time highs before increasing their positions.
Key economic data releases this week for traders to monitor include today’s US ADP employment report, ISM Services PMI, and Job Openings figures. Tomorrow brings the US Jobless Claims data. The week concludes on Friday with the closely watched US NFP report and the Supreme Court ruling on tariffs—all of which could significantly influence silver’s price action.
Original Source: Giuseppe Dellamotta of investinglive.com
