Saad Ullah
Silver (XAG) has surged from $33 in June to over $41 in early September, marking one of 2025's strongest rallies with three consecutive higher highs. However, this rapid pace suggests the market may need a breather before the next major move.
Technical Pattern Points to Pause
Trader @Barkworth17 highlights that silver has formed two similar-sized consolidations during this upward leg, creating symmetry that often precedes structural changes. The metal broke above $33.17 in June and surged past $38.87 resistance, with the latest rally reaching the low $41s for a third consecutive higher high.
Price briefly tested above $41.70 but hasn't confirmed support there. Volume cooled after initial breakout expansion, while momentum indicators show elevated readings suggesting potential overextension.
Market Context
Safe-haven demand amid equity volatility has supported silver, but this could shift if risk markets stabilize. After such a strong run, profit-taking pressure may emerge. The technical symmetry from two previous consolidations creates a natural pause point for the market to digest gains.
Key Scenarios
A decisive close above $41.70 could extend the rally toward $43.50–$45.00. Alternatively, silver may consolidate between $38.50–$41.50 to reset indicators. A breakdown below $38.87 would trigger a retest of $37.60–$38.00, with key support at $39.22, $38.87, and $38.07.
The current setup suggests silver needs time to consolidate before determining its next major direction.
Saad Ullah
