Silver (XAGUSD) Price Forecast: Record Breakout Signals Higher Targets

Buyers Drive Record-Breaking Rally

Silver blasted to a new record high of $52.27 on Monday, triggered by an inside day bull breakout above Friday’s high of $51.13. Last week’s peak of $51.24 eclipsed the April 2011 high of $49.81 and the January 1980 high of $48.00, with a weekly close above those levels cementing the long-term bullish breakout. Both daily and weekly closing prices set fresh records, showcasing relentless buyer control. However, the surge raises the risk of an overbought correction, even if minor, as momentum stretches.

Breakout Signals Sustained Strength

The confirmed breakout into uncharted territory reflects robust underlying demand, likely strong enough to propel prices higher. Since the April low at $28.32, the bull trend’s slope has steepened, with a recent breakout above the near-term rising channel’s upper boundary fueling uninterrupted gains. This unwavering momentum underscores buyers’ dominance, suggesting the uptrend remains intact as long as key support hold. Today’s wide green range candle, with prices poised to close near the session’s highs, further highlights aggressive but measured buying, avoiding speculative excess.

Key Support at 10-Day Average

Should weakness emerge, the 10-day moving average at $46.60 stands as the first line of defense. This level has anchored a near-term uptrend, and its proximity to current prices means a test could occur with relatively minimal pullback. If the 10-day average holds as dynamic support, the bullish trajectory—marked by its recent steep ascent – may persist. A decisive break below this line, confirmed by a daily close, would signal potential for lower prices, with the 20-day moving average at $44.50 as the next support to watch.

Outlook and Price Behavior

Silver’s reaction to new highs is telling: today’s strong advance reflects improving demand rather than resistance, a bullish sign. The one-day consolidation before pushing past $51.24 suggests controlled buying, supporting further upside. Until signs of weakness appear, such as a break below $50.14 – the path of least resistance remains higher. Traders should monitor today’s close for confirmation of strength and watch the 10-day average for any cracks in the bullish armor.

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