So, It’s $120 for Silver After All

On Friday, I wrote that it’s either $100 or $120 for the white metal as its next target.

Now we know that it’s the latter.

Since silver is clearly above $100 (no wonder, silver has remarkable fundamentals), it looks like it’s really going to attack $120 or even move a few dollars above it before topping.

The techniques pointing to $120 in case of the white precious metals remain up-to-date.

Silver’s Next Target Resolved

Silver price broke above $100 with vengeance, which means that $120 is the next target – simple as that. There are no other meaningful targets or resistance levels nearby.

What’s the trigger for this week’s rally? Combination of factors. It’s the Fed’s interest rate decision week, it’s the week when we’re going to hear more from Trump, and it’s also the week when we have more threats of U.S. government shutdown. The uncertainty related to it pushed the USD lower, while pushing PMs higher.

The USD Index declined sharply, and it’s likely a combination of concerns about this week and the aftermath of the Greenland threats. The latter seems to have been resolved – in tune with my previous indications – but the markets appear to be still reacting.

Dollar Holds Long-Term Structure

The April low was broken, but the USD Index remains above the 2025 lows. All previous breakdowns below the April 2025 low were then invalidated.

From the long-term point of view, it’s clear that this is either a broad bottom or a flag that would be followed by a drop to 90 or below it. The former remains much more likely. This looks like another attempt to break below the rising, long-term support line that’s based on the 2011 and 2021 bottoms. All previous attempts were invalidated, and the same is likely for this one.

Remember – the political situation is chaotic, and the USD Index has already been severely suppressed. However, the U.S. economy remains poised to benefit the most from the AI revolution, it’s still the world’s leading economy with the biggest army. And the USD Index is in a long-term uptrend.

USD’s revival would be likely to trigger tops in the precious metals sector. In terms of prices, another $100 in gold and another $10 or so in silver may seem significant, but in terms of time, this could happen very quickly (perhaps in less than a week).

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Przemyslaw K. Radomski, CFA
Founder, Editor-in-chief