Silver prices held steady at $31.85 on Monday, despite increased demand, particularly from the solar energy sector. The recent stagnation in prices can be attributed to improved market sentiment, as investors shift focus away from safe-haven assets due to reduced concerns about a U.S. economic slowdown and optimism surrounding China’s stimulus efforts. According to the Silver Institute, ongoing supply shortages have led to a market deficit for silver, with global demand surpassing supply for three consecutive years. The imbalance is driven by rising industrial consumption and limited new mine production. This scarcity of silver and other transition metals could potentially drive prices higher in the future. The Bloomberg NEF report warns of a broader shortage in key transition metals, estimating a substantial investment requirement by 2050 to secure a stable supply of raw materials for clean energy technologies. Failure to make this investment could result in significant price spikes for essential metals like aluminium, copper, and lithium by 2030. Looking ahead, the combination of increasing demand and constrained supply suggests a potential for higher silver prices in the near term. Remaining informed about market developments will be crucial for investors and industries dependent on silver to navigate potential price fluctuations and ensure a stable long-term supply. In the short term, silver is expected to trade within a range of $31.78 to $32.27. A breakout above $32.27 could target further gains, while a drop below $31.78 may lead to further price declines. Despite showing an upward trendline on the 2-hour chart, silver prices continue to be capped below the $31.98 pivot point, indicating a struggle to gain upward momentum.