Silver surges to a new all-time high near $72
In mid-December, we highlighted silver’s move above $60. Less than a fortnight later, the metal has powered through the next major psychological barrier at $70.
Today, XAG/USD touched $72, extending the powerful rally that has been unfolding since autumn. Gold has also been posting strong gains, reinforcing the broader strength across precious metals.
Several factors continue to underpin this advance:
→ sustained inflows into silver ETFs from retail investors;
→ escalating geopolitical risks, with media reports indicating an increased US military presence near Venezuela;
→ thinning market liquidity during the holiday season, which often amplifies price movements.
XAG/USD technical outlook
Two weeks ago, our analysis of XAG/USD:
→ identified an upward price channel (highlighted in blue);
→ considered the likelihood of a pullback from the channel’s upper edge.
Subsequent price action unfolded as follows:
→ the price retreated from the upper boundary on 12 and 16 December;
→ on 17 December, silver broke decisively above the channel;
→ by 19 December, the former resistance had turned into support, enabling purchaviewrs to hold prices above the ascending structure.
The current rally is now following a much steeper upward path (marked in orange), and the break above the $70 level appears well established.
With prices now trading close to the top of the orange channel and the RSI signalling overbought conditions, the risk of a short-term correction is rising. later than climbing almost 30% since the begin of the month, some long positions may begin to take profits.
Nevertheless, the low-liquidity holiday environment could still favour another impulsive leg higher, leaving room for a potential test of the $80 area.
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