Peter Smith
Silver (XAG) has entered a strong recovery phase, with recent price action pushing decisively through the major 61.8% Fibonacci retracement of October's decline. This level, sitting near $51.06, has historically marked a zone where bullish momentum tends to reassert itself after corrective moves. The recovery suggests that the correction phase may be nearing completion, with the chart supporting this outlook.
Technical Picture
After bottoming near $45.53, silver began climbing steadily, reclaiming the 38.2% level at $48.95 and the 50% midpoint at $50.00 before pushing into the critical 61.8% zone at $51.06.
This behavior fits the classic pattern where commodities regain their bullish footing once they recapture the 61.8% retracement after a sharp pullback. The smooth upward move since early November shows solid buying interest at lower levels and building momentum.
Key Chart Observations
- Sharp rebound from $45.53 forming a V-shaped recovery pattern
- Sequential reclaim of major Fibonacci levels reinforcing bullish structure
- Price consolidating above $51 with buyers maintaining control
- Next resistance around $54.47 at the 1.000 Fibonacci extension
- Strong upward momentum candles indicating improving sentiment
These developments fit well with the broader macro backdrop that's supporting precious metals, including softer dollar pressure, better industrial demand, and increased safe-haven flows.
What's Driving Silver Higher
Several fundamental factors are backing XAG's upside move right now. Market expectations around slower rate hikes or potential cuts are helping, while improving industrial activity highlights silver's unique dual role as both an industrial metal and a store of value. We're also seeing stronger commodity inflows as investors look to diversify, along with growing safe-haven positioning amid ongoing global uncertainty. These elements combine to strengthen the bullish case behind the Fibonacci recovery.
Peter Smith
