Silver Price Prediction: $38.43 Triangle Points to Breakout Toward $40
Silver is trading at $38.43, consolidating after being rejected at $39.06. On the 4-hour chart, silver is in a symmetrical triangle...
Quick overview
- Silver is currently trading at $38.43, consolidating after being rejected at $39.06, with a symmetrical triangle pattern on the 4-hour chart.
- Key resistance levels are at $39.06, $39.52, and $39.97, while support levels are at $38.17, $37.55, and $37.04.
- The market is influenced by US political and monetary turmoil, with silver's price dynamics closely tied to gold's performance.
- Traders should prepare for a potential breakout, as silver's consolidation phase is expected to end soon, impacting market sentiment for September.
Silver is trading at $38.43, consolidating after being rejected at $39.06. On the 4-hour chart, silver is in a symmetrical triangle, with higher lows above $37.04 and lower highs from $39.97. This is a market waiting to explode once it breaks out.
The 50-period SMA at $38.15 has been a cushion, with silver bouncing above it repeatedly. But momentum is hesitant. The RSI is 50, neutral, and the tug-of-war between buyers and sellers. The MACD histogram is flat at zero, momentum is fading. The recent small-bodied candles after the $39.06 spike also show indecision.
Key levels for silver’s short-term outlook:
- Upside breakout: Above $39.06, resistance at $39.52 and $39.97.
- Support floors: $38.17 and $37.55, with a deeper base at $37.04.
- Bearish risk: Below $37.55, price could go to $37.04 or lower.
Gold Fundamentals Spill Into Silver
Silver often follows gold and the backdrop for both is being shaped by US political and monetary turmoil. The dollar strengthened after President Donald Trump fired Federal Reserve Governor Lisa Cook, raising questions about the Fed’s independence. This spooked investors and brought back concerns about the dollar’s long term credibility.
This uncertainty usually benefits non-yielding safe-haven assets like gold and silver. Gold holding near $3,380 despite the dollar strength has capped silver’s downside. With gold as the anchor, silver’s correlation means any bullish spill over could amplify silver’s next move.
Silver has an advantage, it’s dual role – as an investment and as an industrial metal. Its use in solar panels and electronics provides structural demand that supports prices beyond macro safe-haven flows. This dual demand makes silver more volatile than gold but it also gives silver more upside when fundamentals align.
Silver Price Prediction: Eyes on $40
Technicals are suggesting silver is about to break out. Above $39.06 and it’s $39.52 and $39.97, triangle resistance. Below $38.17 and it’s $37.55 or $37.04.
With gold holding under Fed uncertainty and safe-haven demand intact, silver’s bias is cautiously bullish. If buyers get momentum, $40 looks possible in the coming days.
For traders, the message is simple: silver’s consolidation won’t last much longer and the breakout—whichever way it goes—will set the tone for September.
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