Silver has experienced a significant rally, climbing 13% over the past five days and holding near the $87–88 per ounce range after breaking through the previous resistance zone of $83–84 [1]. According to OCBC strategist Christopher Wong, this surge is primarily attributed to technical breakout momentum rather than changes in interest rates, as yields remained firm during the move [1]. The rally is also supported by stronger bids in other industrial metals and expectations surrounding the upcoming Trump–Xi meeting, with market participants anticipating a potentially softer tone on US-China issues such as tariffs, supply chains, and critical minerals [1].
Wong highlights that a more conciliatory US-China stance could further benefit silver due to its industrial applications [1]. Despite the bullish momentum, technical indicators such as the overbought RSI suggest caution, as the rally may be susceptible to profit-taking in the near term [1]. Key resistance levels are identified at $90 and $92.60, while support is seen at $81.10 (100-day moving average), $76/77 (21- and 50-day moving averages), and $70 [1].
The analysis notes that the recent move in silver appears less influenced by interest rate dynamics and more by technical and geopolitical factors [1]. The potential for a 'buy the rumour, sell the fact' scenario is also flagged, indicating that the current rally could face headwinds if market expectations are not met following the Trump–Xi meeting [1].
CONCLUSION
Silver's recent 13% surge is driven by technical momentum and optimism over a softer US-China stance, but overbought conditions and upcoming geopolitical events suggest caution. Key resistance and support levels have been identified, and the market may be vulnerable to profit-taking in the near term.