Silver Price Set to Break $40 as Bullish Momentum Builds

The outlook for silver has shifted to a bullish stance as the metal demonstrated consistent gains on July 3, with spot prices fluctuating between $36.34 and $37.07 and ending the day at $36.85, representing an increase of 0.82%. The September MCX futures also rose to ₹1,08,200, up roughly 0.6%. Supported by strong technical signals and favorable fundamentals, silver may soon test the $40 level in the near term. A key factor supporting this positive projection is the strengthening global economic indicators. In the United States, June's nonfarm payrolls exceeded expectations with a net addition of 147,000 jobs, surpassing the forecast of 106,000. Additionally, the unemployment rate decreased to 4.1%, slightly below the anticipated 4.3%, despite a decline in labor force participation. This improvement in economic data fuels optimism for silver, as increased employment can lead to higher industrial demand and investment interest in the metal. The technical momentum further backs the potential for a rally toward $40, especially if supportive fundamentals persist. Investors should monitor economic releases and commodity technical developments closely, as they could influence silver's trajectory in the short to medium term.