Highest Silver Close in 11 Yrs Above $30, Next Target at $40

Silver (XAG/USD) experienced a significant escalation in the upward momentum on Friday, rising over 7% and reaching an intraday high of $31.50. This strong bullish movement is being driven by several factors, including as softening USD, since Silver and Gold prices are quoted in USD, increased demand for safe haven assets in times of global uncertainty as investors often safety first during geopolitical tensions, economic uncertainty, and market volatility, which have contributed to the increased demand for Silver and Gold.

The bullish market sentiment led to a $2 gain in silver prices today, while GOLD gained around $45. The sharp rise in SILVER prices suggests strong bullish sentiment among traders and investors which will likely continue in the coming weeks, since we are in that time in history characterized by 7-10 years of turbulence, which will be followed by 7-10 years of peace and prosperity before the big decision. The rapid ascent of silver prices, especially the $1.50 gain above $30, was also influenced by the break of this key resistance level which might have triggered a number of limit buy orders above this major level.

The recent weakening economic data from the United States has significantly influenced market expectations, particularly regarding potential interest rate reductions by the Federal Reserve. This shift in expectations has contributed to the depreciation of the USD over the past two weeks, which in turn has driven up silver prices by $5 so far in May. US Core CPI Month-over-Month (m/m) rose by 0.3% in the April, down from 0.4% in the previous month while the headline CPI Month-over-Month (m/m) also ticked down, increasing by 0.3%, slower than the 0.4% rise recorded in the previous month.

The CPI Year-over-Year (y/y) ticked lower to 3.4%, indicating a moderation in the overall inflation rate compared to prior periods while Retail Sales remained flat at 0.0% last month, showing no growth compared to the previous month, which reflects potential consumer spending weakness.

Silver Chart Monthly – MAs Have Provided Solid Support

After the bullish breakout, beginning with a decisive break above the $30 per ounce level and surpassing the February high, which was just slightly above that mark, short covering propelling Silver prices to $31.50. This marks the highest price for Silver in 11 years, since 2013.

From a technical perspective, the path forward appears relatively clear, with minimal resistance. The 2012 high of $35.40s is a plausible target given the current momentum and strong interest in precious metals. This target reflects the energy and excitement that has been building around precious metals as safe-haven assets since October last year. Additionally, Gold (XAU/USD) closed above $2,400 for the first time ever, which also marks a significant weekly close and opens the door for further gains, which is another bullish signal for Silver.

Silver Live Chart