Saad Ullah
Silver (XAG) is showing renewed signs of strength as traders turn their attention to a critical price threshold around $49.30. The chart now displays a well-defined recovery pattern, signaling that the market may be preparing for a more sustained upward push.
Silver Gains Strength as Buyers Reclaim Momentum
Recent market commentary from trader Ole S Hansen highlights growing interest in the metal's improving structure, especially as price action continues to build higher lows. A detailed look at the 2-hour chart confirms a clear triple swing-low structure, with deep reversals forming consistently around the $45.50–46.00 region. Each downturn into this zone has sparked strong buyer activity, suggesting that demand remains firmly anchored at these levels.
Above price, several important resistance areas are visible: $48.95 (Fibonacci 0.382), $49.30 (key horizontal resistance marked by the green line), $50.00 (major psychological barrier plus Fibonacci 0.500), and $51.06 (Fibonacci 0.618 retracement). The price is now trading just under the $48.95–49.30 cluster, a zone that previously rejected momentum multiple times. The chart also displays the SMA 21 and SMA 50 turning upward, while the SMA 200 at $54.47 remains significantly higher, leaving room for medium-term bullish normalization.
Market Drivers Behind Silver's Renewed Momentum
Silver's recent strength is supported not only by technical factors but by macroeconomic dynamics as well. Expectations of softer real yields, solid industrial demand—particularly from the solar and electronics sectors—and ongoing geopolitical uncertainty are helping lift interest in precious metals. Additionally, equity-market volatility continues to drive some capital toward defensive assets, reinforcing silver's role as both an industrial commodity and a partial safe-haven.
Key Levels Traders Are Watching
- Support: $46.00, $45.50
- Near-term resistance: $48.95, $49.30
- Extended targets: $50.00, $51.06
A sustainable move above $49.30 would mark a decisive shift in market sentiment, positioning silver for a potential retest of the major psychological $50 threshold.
Saad Ullah
