According to OCBC’s Christopher Wong, silver is currently consolidating near the 70.60–72 resistance band, with technical momentum described as mildly bullish but showing signs of fading. The recent price action follows a sharp rebound earlier in the month, after which both ETF holdings and managed-money net positioning have increased from previously light levels. Wong notes that futures positioning in silver remains considerably lighter than in gold, indicating more room for fresh participation if the precious-metals rally resumes [1].
The increase in speculative positioning appears to be driven more by short covering than by aggressive new long positions, suggesting that market conviction is not yet stretched. This leaves scope for further positioning to build if macroeconomic conditions, such as softer yields and a weaker US Dollar, become more favorable [1].
Wong highlights that a decisive break above the 70.60–72 resistance area would provide stronger confirmation that silver’s recovery has further to run, potentially targeting 80.30, which corresponds to the 38.2% Fibonacci retracement of the 2026 high to low. On the downside, support is identified at the 61.30–62 area (aligned with the 21 and 50-day moving averages), with further support at the 54–55 level, which marks the 2026 low. The recovery bias would be nullified if silver breaches these support levels [1].
Overall, while the technical bias remains constructive, a cleaner extension higher in silver prices is seen as likely only if yields and the US Dollar weaken further, enabling a breakout above the current resistance zone [1].
CONCLUSION
Silver is consolidating near a key resistance zone, with mildly bullish momentum and rising positioning, but a breakout is needed for further upside. Market conviction is not yet stretched, leaving room for additional participation if macro conditions turn favorable. A decisive move above resistance could open the way to higher targets, while downside breaches would nullify the recovery bias.