Silver Remains Hot Near Record, But Begins to Enter a Resting Phase
Silver prices remain at high levels today, following a sharp rally that pushed the metal near a record high of around US$59 per ounce at the end of last week. In the most recent session, silver traded in the US$57–58 per ounce range, slightly corrected due to profit-taking by market participants following the previous significant rally. Despite the price adjustment, the underlying sentiment behind silver's rally remains strong. Over the year, silver prices have more than doubled, outperforming gold and attracting significant interest from both institutional and retail investors, as evidenced by the strong inflows into silver-based ETFs in recent weeks.
Fundamentally, silver's movement is largely driven by expectations that the Federal Reserve will cut interest rates again in the near future. Lower interest rates typically weaken the US dollar and bond yields, making non-yielding precious metals like silver and gold more attractive. At the same time, the market is also seeing positive news on both the demand and supply side: demand for silver for solar panels, electronics, and green technology continues to rise, while physical inventories in several major hubs are reportedly declining. The combination of a weakening dollar, the prospect of interest rate cuts, and signals of tight supply keeps silver's fundamental bias bullish.
From a technical perspective, silver's broad trend remains clearly upward. The price pattern has formed a series of higher highs and higher lows since late October, indicating continued buyer dominance. In the short term, the US$57–56 per ounce zone is a key consolidation area; as long as prices hold above this area, the market tends to view the movement as a "healthy break" within the broader uptrend. Below this, the next support is expected to be around US$55 per ounce, which could be tested if selling pressure intensifies.
On the upside, the area around US$59–60 per ounce now serves as key resistance and a key psychological zone. If this level is successfully broken and the price is able to hold above it, the opportunity to continue the rally to a higher range, such as US$62–65 per ounce, is wide open. However, momentum indicators such as the daily RSI, which is approaching the overbought area, signal that the market is vulnerable to a correction at any time, especially if the Fed's decision or the release of economic data falls short of expectations.
For the time being, silver is in a phase that could be described as "hot but fragile": the uptrend remains dominant, but there is also considerable room for price volatility. For short-term traders, risk management is key in high-price areas like this, with close attention to key support and resistance levels. Meanwhile, for medium- to long-term investors, the combination of potentially lower interest rates, strong industrial demand, and relatively tight supply still makes silver a worthy asset to consider in a precious metals portfolio.
Source: Newsmaker.id
