Silver Price Surge: Bulls Target $110 Breakout in Sustained Uptrend
Silver prices are currently experiencing consolidation just below the $110 mark, following a strong multi-month rally. As of now, the price stands around $107.50, reflecting a moderate easing after testing the resistance zone of $109–$110. This bullish trend in the silver market is underpinned by a weaker US dollar and ongoing geopolitical uncertainty.
Market Dynamics Influencing Silver Prices
The demand for silver has been bolstered by several factors:
- A weaker US dollar
- Easing real yields
- Geopolitical tensions
These elements combine to enhance the attractiveness of silver as a precious metal investment, showcasing its durability in times of market uncertainty.
Technical Analysis of Silver
Silver’s current trading structure suggests a stable bullish framework. The prices are contained within a defined rising channel, which has been guiding the market since it rebounded from below the $90 threshold. The channel’s upper boundary aligns with the critical $109–$110 zone, where the recent price hesitation has been observed.
The following key levels are noteworthy:
- Support at $103.30, which has proven reliable
- Resistance between $109.50 and $110.00
- Major support at $97.80–$98.00, where previous resistance meets the channel’s lower boundary
Silver Price Forecast
The upcoming direction of silver prices will largely depend on the behavior around the $109.50–$110.00 resistance zone. A decisive break through this level would likely indicate a continuation of the current trend, targeting $113.50, with a potential extension up to $118.40. Conversely, a breach below $104.90 could trigger deeper consolidation, with targets toward $102.20 or even $99.90.
Momentum Indicators
Momentum indicators reflect cooling conditions but do not suggest a reversal. The Relative Strength Index (RSI) is currently around 66, down from overbought levels but still within an overall bullish range. There is also no bearish divergence detected, reducing the risk of significant price corrections at this stage.
From a Fibonacci perspective, the recent pullback has been modest, positioning the market well for sustained trend momentum. This behavior indicates a tendency for price consolidation that resolves over time rather than through steep price corrections.
Investment Strategy
Investors are advised to consider buying on pullbacks toward the $103–$100 range, targeting $114, while maintaining a stop-loss just below $97.80 to mitigate potential losses. Overall, as long as crucial support levels remain intact, silver is poised for a continued upward trajectory in this momentum-driven uptrend.
