Kedia Advisory Expects Near-Term Weakness to Continue, But Forecasts Next Bull Cycle Could Push Silver Towards $170

Silver, one of the best-performing commodities of the past few years, may still have significant long-term upside despite entering a corrective phase, according to a new outlook by Kedia Stocks and Commodities Research. The brokerage believes that while silver prices could face additional pressure over the next few months, the precious metal remains positioned for a potentially powerful rally during the next commodity bull cycle.

The report presents a dual outlook for investors. In the short term, analysts remain cautious due to technical weakness and changing market dynamics. However, over a two-to-three-year horizon, they expect silver to benefit from strong industrial demand, supply constraints, and renewed investor interest, potentially driving prices as high as $170 per ounce.

Silver Enters a Consolidation Phase After Historic Rally

Silver experienced an extraordinary rally over the last few years, supported by rising industrial demand, geopolitical uncertainties, central bank actions, and increasing interest in precious metals as alternative investments.

However, after reaching record highs, prices have corrected significantly, falling nearly 44 per cent from their peak levels.

According to Kedia Advisory, the current decline should be viewed as a structural correction rather than the end of the long-term bull market. Such corrections are common after strong rallies and often help reset valuations before the next phase of growth.

The brokerage expects silver to remain under pressure over the next three months as traders continue to book profits and markets reassess macroeconomic conditions.

Critical Support Levels Come Into Focus

Technical indicators suggest that silver is currently trading near a major support zone.

The metal is hovering around its 50 per cent Fibonacci retracement level, which analysts identify as an important area for determining future price direction. A sustained break below this support could trigger further declines.

Kedia Advisory estimates that silver could fall toward the $53–$54 range in the near term. In a more bearish scenario, prices may decline further to approximately $48.60 per ounce.

This level is particularly significant because it aligns with historical support zones and long-term chart structures that have influenced previous market cycles.

Analysts believe that investors should closely monitor these levels, as they could eventually emerge as attractive accumulation zones for long-term positions.

Resistance Remains Strong Near $70

While intermittent rallies remain possible, analysts expect silver to face strong resistance in the $70–$73 range.

This area is viewed as a major psychological barrier where sellers may re-enter the market. As a result, short-term upward moves may struggle to gain sustained momentum unless supported by significant improvements in market sentiment.

According to the report, a weekly close above $78 would be required to confirm a meaningful trend reversal and restore a stronger bullish outlook.

Until such a breakout occurs, traders may continue to adopt a cautious approach.

Gold-Silver Ratio Signals Potential Rebalancing

A key indicator supporting the brokerage’s cautious near-term outlook is the Gold-Silver Ratio (GSR), which measures how many ounces of silver are required to purchase one ounce of gold.

Historically, the ratio has served as an important valuation metric for precious metals investors.

When the ratio rises significantly, silver is generally considered undervalued relative to gold. Conversely, a sharp decline often suggests that silver has become relatively expensive.

In late 2022, the ratio climbed above 100, indicating that silver was deeply undervalued. This was followed by a substantial rally in silver prices.

As silver surged, the ratio fell to around 44, reflecting strong outperformance compared with gold. The ratio has since recovered to approximately 64, and analysts expect it could rise further toward 72.

Such a move would imply additional downside pressure on silver prices in the short term.

Industrial Demand Continues to Strengthen

Despite concerns regarding near-term price weakness, the long-term fundamentals for silver remain highly supportive.

Unlike gold, silver enjoys strong industrial demand in addition to its role as an investment asset. The metal is essential in several rapidly growing industries, including solar energy, electric vehicles, semiconductors, electronics, telecommunications, and advanced manufacturing.

The global shift toward clean energy and electrification is expected to significantly increase silver consumption over the coming decade.

Solar panels, in particular, require substantial amounts of silver, making renewable energy expansion a major long-term demand driver.

Energy Transition Could Boost Consumption

Governments worldwide continue to invest heavily in renewable energy infrastructure as part of efforts to reduce carbon emissions and achieve climate goals.

The expansion of solar power generation, battery technologies, electric vehicles, and smart grid infrastructure is expected to create sustained demand for silver.

Many industry experts believe that the green energy transition could become one of the strongest structural catalysts for silver prices over the next decade.

As industrial consumption grows, the market could face tightening supply conditions that support higher prices.

Supply Challenges Add to Bullish Outlook

Silver's long-term outlook is also supported by concerns regarding future mine supply.

Global production growth has remained relatively limited, while industrial demand continues to expand. New mining projects often require years of development and substantial capital investment, limiting the industry's ability to rapidly increase output.

If demand continues to outpace supply, silver could experience recurring deficits that support a stronger price environment.

The combination of growing industrial consumption and constrained production forms a key pillar of the bullish long-term thesis.

Long-Term Price Targets Remain Ambitious

Kedia Advisory expects the next major bull cycle in silver to emerge between 2027 and 2029.

Under this scenario, the brokerage projects silver could revisit previous highs before advancing into a target range of $120 to $170 per ounce.

The upper end of that forecast implies an upside potential of approximately 150 per cent from current levels.

Such gains would place silver among the strongest-performing major asset classes during the next commodity cycle.

Investment Strategy for Different Time Horizons

The report suggests that investors should distinguish between tactical and strategic opportunities.

For short-term traders, the current market environment may favor a cautious approach, with rallies potentially offering opportunities for profit booking.

For long-term investors, however, periods of weakness could provide attractive entry points into a market supported by favorable structural trends.

Analysts believe gradual accumulation during corrections may prove beneficial for investors willing to look beyond short-term volatility.

Outlook

Silver remains at an interesting crossroads. Technical indicators suggest that the correction phase may not yet be complete, and further downside cannot be ruled out in the coming months.

However, the broader long-term story remains compelling. Rising industrial demand, the global energy transition, constrained supply growth, and the potential return of investment demand continue to support a constructive outlook for the metal.

While short-term volatility may test investor patience, silver's role in future technologies and renewable energy infrastructure could position it as one of the most closely watched commodities of the next decade. If the next bull cycle unfolds as expected, the metal may once again reward long-term investors with substantial gains.