Eseandre Mordi
⬤ Silver futures set a record on Monday when they leapt to almost $59, the highest price ever reached, after multiple weeks of steady gains. The metal has now entered what traders call a parabolic phase - the chart shows a line that points almost straight up. Once it moved decisively past the long standing resistance levels, silver broke through the $58-$59 band that had acted as a firm ceiling for months.
⬤ The advance did not appear suddenly. Silver began to gather strength in early September and climbed in a measured way posting a sequence of higher peaks followed by higher troughs, before the pace accelerated in the latest sessions. During Monday's trading the contract rose from about $54 to $58.91, a jump of more than three percent in one day. The decisive event occurred when the price smashed through historic resistance, a signal that buyers held clear command.
The market remains firmly positioned in favour of continued bullish momentum, supported by sustained buying pressure and expanding volume.
⬤ In this newest stretch of the rally silver has moved faster than gold and faster than the main industrial metals. The advance has carried the metal far beyond the $44-$52 range where it had spent months. No obvious resistance now lies overhead - the contract trades in price ground it has never visited. Momentum traders have entered in force once the quote crossed the symbolic $59 line and volume figures indicate that their activity is not finished.
⬤ A close above $59 matters not only for silver but for the whole commodities complex. Sharp moves in precious metals tend to spread into inflation linked assets and to alter the wider mood of the market. With silver now in uncharted territory, the next few sessions will prove critical. The metal may either extend this parabolic rise or finally pause and establish a fresh base after one of its strongest runs in years. Whatever follows observers will remember this moment.
Eseandre Mordi
