Silver tests $65 resistance as buyers struggle to extend rally

Silver traded near $64.41 per ounce Aug 10, testing $65 resistance as buyers struggled to extend the rally above its 50-day moving average.

Silver held above the 50-day exponential moving average of $60.74 and the 100-day EMA of $59.92, confirming a short-term bullish move, according to spot market data. The last few candles closed with price consolidating, with a high likelihood of a continuation pattern supported by the breakout zone around $63.10.

The Silver Institute anticipates a sixth consecutive market deficit in 2026 at 67 million ounces even with total supply up 1.5% and mined production around 820 million ounces. Industrial fabrication is expected to fall about 2% to 650 million ounces as solar manufacturers implement silver thrifting and substitution, while AI infrastructure and investment in automotive electronics and power grids remain structural demand drivers.

First resistance sits at $65.21, with a greater level at $67.00. Support lies at $63.10, $61.16, and $59.94. The US CPI report Wednesday and PPI Thursday are the next catalysts, with both expected to show lower inflation.

Why $65 Is Proving Sticky

The $65 level represents a psychological and structural resistance zone. Silver's relative strength index suggests bullish momentum is strong but slightly above overbought levels, which has slowed the price action. A close above $65.21 would accelerate the move toward $67.00, while a close below the channel support at $63.10 would invalidate the current bullish posture.

Macro Backdrop Supports the Metal

Silver's move comes as weaker US labor data lowers the odds of a Federal Reserve rate hike in September. July nonfarm payrolls fell by 18,000 against the Fed's forecast of a gain, and the unemployment rate rose from 4.4% to 4.6%. Gold, a peer safe-haven asset, traded near $4,354, above its 50-day EMA of $4,183 and 100-day EMA of $4,136.

Geopolitical tension in the Strait of Hormuz, where shipping may not reopen after new agreements between Iran and Oman, continues to support safe-haven demand. The World Gold Council's 2026 survey found 45% of central banks expect to add gold to their official reserves within the year.

This article is for informational purposes only and does not constitute investment advice.