Saad Ullah
Silver (XAG) has emerged as one of this year's top commodity performers, breaking through important resistance zones and edging closer to the $50 mark. Those who positioned themselves after the breakout above $34.6 have enjoyed impressive returns, though the chart hints that the real challenge still lies ahead.
Silver's Rally Gains Momentum
Market analyst Aksel Kibar pointed out that silver's move above $34.6 marked a turning point for the metal's strength. Looking at the weekly chart, you can see how silver spent nearly 10 months consolidating in a rectangle pattern before finally breaking out.
Currently trading around $49.3, silver has already blown past its initial $40.3 target. The price action has formed a rising channel, with each low since 2022 coming in higher than the last - a clear sign that buyers remain in control.
Key Levels Worth Watching
The $34.6 zone stands as crucial support if silver decides to pull back. The $43 level acted as a temporary pause within the channel but was quickly left behind. The real test sits at $50, which represents the strongest resistance ahead. A clean break above this psychological level could potentially kick off a rally that lasts for years.
What's Driving Silver Higher
There are solid reasons behind silver's climb. Investors keep turning to metals as a shield against inflation that just won't quit. On the industrial side, silver plays a vital role in clean energy tech - especially solar panels - which keeps demand growing. The weaker dollar has also made silver more attractive globally, adding fuel to the fire.
Saad Ullah
