Silver Smashes $33 Barrier: Bulls Ride Three White Soldiers Pattern

Silver prices (XAG/USD) maintained their upward momentum for the third consecutive day, reaching $33.27 after hitting an intraday high of $33.35 on Friday.

The rally is fueled by a combination of factors, including a weakening U.S. dollar, geopolitical uncertainty, and increased safe-haven demand as concerns over global trade policies persist.

Dollar Weakness and Trade Policy Concerns Boost Silver

The U.S. dollar weakened as the Dollar Index (DXY) fell to 107.50, following positive developments in peace talks that reduced demand for the dollar’s safe-haven appeal. A weaker dollar makes silver more affordable for international buyers, driving demand higher.

Additionally, the prospect of new reciprocal tariffs has increased market uncertainty. Investors are moving toward silver as a protective measure against potential trade disruptions. Inflationary pressures also contribute to the metal’s appeal. The Producer Price Index (PPI) rose 3.5% year-over-year in January, exceeding forecasts of 3.2%, signaling persistent inflation that supports silver’s safe-haven narrative.

Hecla Mining Reports Record Revenue Amid Silver Rally

Silver’s price surge has significantly benefited U.S. mining companies. Hecla Mining (NYSE: HL) announced record silver sales of $929.9 million for 2024, with adjusted EBITDA hitting $337.9 million. The company’s operational cash flow soared to $218.3 million, marking a $142.8 million increase from the previous year. Analysts attribute these gains to strong industrial demand and the ongoing uptrend in silver prices.

Technical Analysis: Three White Soldiers Signal Continued Gains

Silver (XAG/USD) currently trades at $33.27, exhibiting strong bullish momentum. The chart shows a three white soldiers pattern, a candlestick formation indicating sustained buying pressure. This pattern suggests continued upward movement as the price breaks out from an ascending channel.

Key Price Levels:

• Pivot Point: $32.65

• Immediate Resistance: $33.55

• Next Resistance: $33.91

• Immediate Support: $32.65

• Next Support: $32.00

Technical Indicators:

• 50 EMA (4-Hour): $32.05

• RSI: 68 (approaching overbought territory)

The 50-EMA remains a reliable support level, while the RSI suggests caution as the market nears overbought conditions.

Conclusion:

Silver’s bullish outlook remains intact as long as the price stays above the $32.65 pivot point. A break past $33.91 could pave the way toward $34.31. However, if support fails, profit-taking might trigger a temporary pullback.

Key Insights:

• Bullish continuation confirmed by three white soldiers pattern.

• Resistance at $33.55; next target at $33.91.

• 50-EMA at $32.05 serves as strong support.