Peter Smith
Silver (XAG) has maintained its powerful uptrend, hitting fresh yearly highs and staying firmly within its ascending channel. The metal is now eyeing the $4,850–$5,000 zone, a technically and psychologically significant level that could determine its near-term direction.
Silver Extends Its Rally Toward Key Resistance
Analyst Burak observed that silver is testing the upper boundary of its channel, with bullish momentum remaining strong and pointing to potential further gains. The chart shows a sharp rally framed by a steep upward blue channel.
Silver currently trades around $4,844, with immediate support near $4,250 (orange line) and major support at $3,750 (green line). The key resistance sits at $5,000, aligned with both the channel top and a major psychological barrier. The uptrend that began in April 2025 has been marked by consistent higher lows, with acceleration intensifying through late summer. A sustained push above $4,800 would strengthen the case for a run at $5,000.
What's Driving Silver Higher
The rally reflects a combination of factors. Gold's surge above $3,900 has created spillover demand for silver. Growing inflation concerns and broader macroeconomic uncertainty are pulling investors toward safe-haven assets. Meanwhile, silver's essential use in solar panels, batteries, and electronics continues to underpin long-term demand fundamentals.
What Comes Next
A breakout above $5,000 could propel silver into uncharted record territory, likely drawing in fresh institutional and retail buying. If the level holds as resistance, a period of consolidation may follow, with $4,250 serving as the critical support to watch. Silver's momentum remains intact, and how it behaves around $5,000 will likely shape the metal's path through the rest of 2025.
Peter Smith
