Usman Salis
⬤ Silver is pushing higher this week, with XAG/USD trading near $56.39 as the market moves into what looks like the final stage of its Elliott Wave cycle. The metal appears to be forming the last fifth wave of the structure, meaning the current rally could be wrapping up soon. The daily chart shows another strong surge following weeks of steady gains.
⬤ The chart reveals a clean impulsive pattern with waves (i), (ii), (iii), and (iv) already finished before the latest breakout. Silver's climb above $55 demonstrates ongoing bullish momentum, though there's uncertainty about how much higher it can go before running out of steam. The fifth wave is accelerating hard, driving prices to new highs while keeping the broader upward trend that's been in place since autumn.
⬤ Recent months have seen XAG/USD deliver textbook Elliott Wave progression with higher highs and higher lows. The trend has featured powerful third waves, clean pullbacks during fourth waves, and strong breakouts. While there's room for more upside, the focus on a maturing fifth wave suggests the rally might slow once buying pressure fades. This fits with broader volatility in precious metals, which have been reacting to changing inflation expectations and renewed appetite for alternative assets.
⬤ This setup matters because fifth wave completions typically lead to corrective phases. Once the final wave tops out, XAG/USD could see sharper pullbacks as short-term traders take profits and the market reevaluates the strength of this advance. How silver behaves near the top of this wave will shape sentiment across precious metals and determine whether consolidation or a larger downward correction comes next.
Usman Salis
