Peter Smith
⬤ Silver absolutely dominated last week, rocketing 9.3% higher while gold managed just 1.3%. That kind of outperformance gets people's attention, especially with the gold-silver ratio sitting right around 60. Many analysts believe if that ratio drops below this level, silver could really take off. The weekly chart shows silver punching through long-standing resistance and building a solid foundation, with near-term bulls eyeing $148 as the next target while longer 2026 projections remain in place.
⬤ Looking at the XAG/USD weekly chart, you can see the historical price clusters and those explosive "moonshot" phases that silver's known for. After spending time consolidating around key support levels, silver's now broken decisively above price ceilings that held it back in previous cycles, with recent closes hovering in the mid-80s. This move fits broader technical patterns playing out across markets. Silver Price Rebounds from Key Support, Targets New Highs points to how the metal bounced from channel support and regained bullish momentum, while Silver Price Outlook: Bulls Face a Critical Test Near $47 Support shows how defending critical support zones can shift the entire price structure. These insights help put silver's current rally into context within its longer cyclical behavior.
⬤ The gold-silver ratio matters because it shows how many ounces of silver you need to buy one ounce of gold. Historically, when this ratio falls, silver tends to outperform gold. As one analyst noted, "a decline below 60 could support further silver gains." Recent analysis like Gold-to-Silver Ratio Signals Potential for Silver Outperformance highlights how ongoing ratio compression could amplify silver's upside. Still, silver remains vulnerable to central bank policy shifts, industrial demand changes, and broader commodity sentiment.
⬤ This price action reveals important shifts in how markets value gold versus silver. Strong weekly performance combined with favorable ratio dynamics suggests traders are increasingly seeing different drivers for each metal. If silver holds current support and consolidates these gains, the broader uptrend could extend. Of course, macro volatility could slow things down, making price structure and ratio indicators crucial for tracking silver's next moves.
Peter Smith
