In 2025, silver experienced what can only be described as an "epic" bull run, with a staggering annual gain of 133% that pushed prices to a record high of $116. As 2026 began, the market reversed sharply. After reaching a peak of $121 at the end of January, silver saw a significant correction, with prices dropping by more than 36% at one point.
Amid this "late spring chill" at the top of the precious metals market, sharp-eyed investors noticed that silver, currently trading in the $70–$75 range, stands at a crossroads between bulls and bears. The launch of Gate TradFi has given investors a new tool to trade silver directly with USDT—no need to switch platforms or be restricted by traditional trading hours. You can now track precious metals 24/7.
Core Drivers of Silver Price Volatility: The Triple Battle of Supply, Demand, and Macro Factors
Silver is a unique asset, serving both as an industrial metal and a safe-haven precious metal. To understand its price movements, you need to look at three key areas.
Supply Side: Structural Shortages Support the Price Floor
Silver is facing a historically rare supply squeeze. Since October 2025, COMEX silver inventories have been cut in half, and just in Q1 2026, delivery demand reached 165 million ounces. The global silver market has seen supply deficits for seven consecutive years, with a projected shortfall of around 40 million ounces in 2026.
Demand Side: Industrial Silver Under Pressure, PV "De-Silverization" Is the Biggest Wild Card
Photovoltaics (PV) have been the largest driver of industrial silver demand, accounting for up to 35% of global industrial silver usage in 2025. However, soaring silver prices are accelerating the PV industry’s "de-silverization," and PV silver demand is expected to drop about 19% in 2026. Emerging sectors like AI data centers and new energy vehicles may partially offset this decline, but in the short term, industrial demand is providing less support for silver prices.
Macro Level: Fed Hawkish Expectations Weigh on Safe-Haven Assets
As a non-yielding asset, precious metals are highly sensitive to interest rates. The current Fed policy rate remains between 3.50% and 3.75%. CME FedWatch shows a 98.4% probability that rates will stay unchanged in June. Expectations for Fed rate cuts in 2026 have plummeted from over 50 basis points at the start of the year to nearly zero. A strong dollar and high rates continue to pressure silver prices.
At the same time, repeated geopolitical tensions in the Middle East and the "capital absorption effect" from the US-Iran conflict are further increasing market volatility.
The Current Silver Market Landscape: June May Be the Turning Point
As of June 4, spot silver trades near $73. The main COMEX silver futures contract is quoted at $73.34/oz, with a daily decline of about 2.93%. According to Nanhua Futures, on June 3, precious metals markets fell 3.41% due to stronger-than-expected economic data.
Major institutions hold significantly divergent views on silver’s outlook:
| Institution | View | Core Logic |
|---|---|---|
| UBS | Cuts Q2 2026 silver target to $85 | PV "de-silverization" narrows demand gap |
| JPMorgan | 2026 average price at $81 (Q4 around $85) | Supply gap hasn’t truly closed |
| HSBC | Raises 2026 average to $75, year-end target $70 | Limited upside, caution advised |
UBS’s May research report notes that the supply-demand balance for silver will fundamentally shift in 2026, with the supply gap shrinking sharply from the previously estimated 300 million ounces to just 60–70 million ounces. JPMorgan remains more optimistic, maintaining its forecast for a $81 average price in 2026.
From a technical perspective, silver faces resistance at the 100-day moving average (around $74.70). Key support lies near $67.80. If that level breaks, silver could test the $64–$66 range. The US May Nonfarm Payrolls report, due this Friday, will be a crucial indicator for market direction.
Gate TradFi: Unlock 24/7 Silver Trading with Crypto Assets
In traditional precious metals markets, traders have long faced three pain points—limited trading hours, high capital thresholds, and inefficient settlement. Gate TradFi is changing the game.
What Is Gate TradFi?
Gate TradFi is an innovative service from Gate that connects cryptocurrency and traditional financial markets. Users don’t need to switch to legacy brokers; simply use familiar USDT as margin to trade global traditional financial assets directly within a unified account system.
What Are You Actually Trading When You Trade Silver on Gate TradFi?
On Gate TradFi, you’re trading silver Contracts for Difference (CFDs). This means you don’t need to own physical silver—you profit from price movements. The platform introduces USDx as an internal pricing unit: when you transfer USDT to your TradFi account, it’s automatically converted 1:1 to USDx. All settlements are returned in USDT, seamlessly connecting crypto and traditional assets.
Core Product Matrix
Gate’s precious metals section currently supports USDT-margined perpetual contracts for gold (XAU) and silver (XAG), as well as silver-pegged CFD products. Silver CFD products offer leverage options of 10x, 20x, 50x, and 100x, allowing investors to flexibly adjust based on their risk preferences.
Gate has also launched spot and contract trading pairs for SLVON (iShares Silver Trust). According to Coinglass, SLVONUSDT spot trading volume reached $1.255 million in 24 hours, with market activity steadily rising.
Why Trade Silver on Gate TradFi?
1. 24/7 Continuous Trading
Traditional precious metals markets are limited by exchange opening hours, often leading to price gaps and liquidity vacuums during major macro events. Gate’s perpetual contracts offer 24/7 trading, making price movements more continuous and allowing traders to adjust positions at any time.
2. Multi-Level Leverage and API Support
Gate TradFi offers fixed leverage options from 10x to 100x for silver, and opens its TradFi API for algorithmic traders, supporting automated strategies, programmatic orders, and position management.
3. One Account, Cross-Asset Allocation
Users can flexibly combine silver CFDs with crypto assets. When macroeconomic uncertainty rises, increasing silver positions can effectively hedge systemic risk in a crypto portfolio. This asset rotation within a single platform is a unique advantage Gate TradFi offers investors.
Practical Silver Trading Strategies: From Short-Term Swings to Macro Hedging
On Gate TradFi, silver trading strategies can be highly flexible.
Strategy 1: Swing Trading and Trend Following
Silver has been correcting from its $121 peak for months. The current $70–$75 range is ideal for trend following or swing trading. Traders can set up long positions near key support levels and wait for price recovery.
Strategy 2: Cross-Market Hedging
Silver’s dual nature makes it an ideal macro hedging tool. When the crypto market is highly volatile, allocating part of your portfolio to silver CFDs can balance overall systemic risk.
Strategy 3: Grid Trading (Ideal for Range Markets)
For investors who prefer not to monitor the market constantly, Gate’s "strategy trading" feature lets you set up a grid. With silver consolidating near $70, a grid strategy in a price range (e.g., $65–$80) can automatically capture profits from price fluctuations.
Risk Reminder: Silver Trading Is Not Without Barriers
While capitalizing on silver price volatility, investors must recognize the risks of CFD trading.
Gate TradFi offers CFD trading—you do not own physical silver or ETF shares, but speculate on price movements. Leveraged trading carries high risk. Although lower leverage options (10x, 20x) provide good risk control for beginners, higher leverage (like 100x) can trigger forced liquidation even on small adverse moves.
Investors are advised to choose leverage levels based on their risk tolerance and strictly follow stop-loss discipline. Gate TradFi’s MT5 trading system supports moving averages, stop-loss orders, and other risk management tools to help improve trading discipline.
Conclusion
The silver market is at a critical juncture in the battle between bulls and bears. Structural supply shortages offer long-term support, while Fed hawkish expectations and PV "de-silverization" create short-term headwinds.
For investors looking to seize opportunities in precious metals, Gate TradFi provides a unique trading solution—trade silver CFDs with USDT, enjoy 24/7 uninterrupted markets, up to 100x leverage, and cross-asset allocation in a single account.
Whether you’re a risk-averse macro hedger or an active short-term trader, Gate TradFi offers a new trading paradigm worth exploring. Log in to Gate now, search for XAG/USD in the precious metals section, and start your silver trading journey.
FAQ
Q: Do I need to register a separate account to trade silver on Gate TradFi?
No. If you already have a Gate account, enabling TradFi requires no extra registration. Simply transfer USDT from your spot account to your dedicated "TradFi margin account" to start trading. The transfer is instant and fee-free.
Q: What’s the difference between silver CFD trading and physical silver?
Physical silver investment requires holding the actual asset, with storage and transport costs. Trading silver CFDs on Gate TradFi means you don’t need to own physical silver—you profit from price movements, with lower barriers, better liquidity, and greater flexibility.
Q: What leverage options does Gate TradFi’s silver product support?
As of the latest upgrade on March 16, Gate TradFi offers 10x, 20x, 50x, and 100x leverage options for silver. Investors can choose flexibly based on their risk preferences.
Q: How does 24/7 silver trading differ from traditional markets?
Traditional precious metals markets are limited by exchange hours—no trading on weekends and holidays. Gate’s perpetual contracts offer 24/7 trading, so price movements are continuous and traders can adjust positions anytime, avoiding passive risks from overnight or weekend gaps.
Q: How is Gate TradFi’s liquidity?
As of March 2026, Gate TradFi’s cumulative trading volume has surpassed $100 billion, with daily peaks over $20 billion—comparable to mainstream mid-sized traditional brokers and capable of supporting rapid large-scale fund flows.
