**Silver Continues Its Upward Trajectory** Silver’s prices are rising, fueled by a shortage in London’s physical market. Currently, spot prices have exceeded $52.50, marking a daily increase of over 2.5%. After hitting a high of $53.77, a slight drop yesterday paused its four-day winning streak temporarily. The tight market is worsened by low inventories in London, creating a short squeeze as demand outstrips supply. Higher borrowing costs are seen as refiners and custodians work to secure silver, which has led to a disparity between London spot prices and US Comex futures prices. Predictions indicate that silver prices will keep rising. Bank of America expects a price of $65 by 2026, while HSBC sees an average of $38.56 for 2025. The price trend shows consistent higher highs and lows, with the Relative Strength Index (RSI) cooling to 64, suggesting a brief pause in momentum. **Silver Logistics Forecast** The immediate resistance for silver prices is around $53.77, and a breakout could push prices towards $55. Investors often choose silver for its value preservation and as a hedge against inflation. Price variations are influenced by geopolitical events, interest rates, US Dollar fluctuations, and industrial demand, especially in electronics and solar industries, with silver’s trends often paralleling gold. The current market clearly favors bullish perspectives, so we should focus on long positions. The severe shortage in London is a significant factor, creating a short squeeze that makes short trades risky. Traders should consider any pullback toward the $51.50 support level as a chance to enter or increase long call options. Recent data from the London Bullion Market Association strengthens this outlook. Their October 2025 report reveals that registered silver inventories have dipped below 250 million ounces, a level not seen in over ten years. This supply crunch is coinciding with strong industrial demand, backed by the International Energy Agency’s latest report showing that solar panel installations are 30% ahead of last year’s record pace. These factors encourage using options strategies like bull call spreads to aim for a rise towards the $55 mark. The overall economic situation is also supportive. The September 2025 US Consumer Price Index registered a higher-than-expected 3.8%, decreasing the chances of Federal Reserve interest rate hikes before 2026. A similar scenario occurred during a retail-led squeeze in early 2021, but that time lacked the significant physical shortage we see now. This makes the ongoing upward trend more robust and sustainable. The cooling of the Relative Strength Index from overbought levels does not signal a peak; instead, it suggests a healthy consolidation before another potential rise. This brief pause presents an opportunity to prepare for a breakout above the all-time high near $53.77. Selling out-of-the-money put options with strikes near the $50.00 psychological support could be an effective way to earn premiums while waiting for the next advance. Create your live VT Markets account and start trading now.

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