$47 Silver Surge: Can Bulls Outrun the One Risk Holding Back the Rally?
Monday during Asian hours, gold stole the show hitting new highs—but silver quietly followed. The white metal went above $47.03/oz...
Quick overview
- Gold reached new highs on Monday, while silver surpassed $47.03/oz for the first time in over 14 years.
- Investor uncertainty due to a looming US government shutdown and potential Fed rate cuts is driving demand for safe-haven assets like silver.
- Silver is trending upward within a rising channel, breaking resistance levels and showing strong momentum despite some short-term hesitation.
- A balanced trade strategy suggests buying on dips in the $45.95-46.20 range, with profit targets set at $47.45 and $48.30/$49.00.
Monday during Asian hours, gold stole the show hitting new highs—but silver quietly followed. The white metal went above $47.03/oz, levels not seen in over 14 years. That’s due to investors fleeing uncertainty as the US government shutdown looms and the Fed is expected to cut rates again. A softer dollar is giving commodities like silver an extra boost too.
Safe-haven demand surged as markets worried about federal funding expiring at midnight September 30 which could stall data releases and squeeze the broader economy. That backdrop combined with industrial demand and supply shortage is driving the metals rally. Gold is pulling silver up but silver is shining on its own.
Silver (XAG/USD) Technicals: Strength, Warning Signs & Trade Edge
Silver is clearly trending up inside a rising channel. It’s been making a series of higher lows and higher highs, breaking above the $45.20 resistance level. On the 2-hour chart, prices touched ~$46.90 near the channel’s upper band before pausing and forming a candle with a thin upper wick—indicating short-term hesitation.
[[XAG/USD-graph]]
The 50-SMA has crossed above the 100-SMA, strong momentum. The RSI near 71 is overbought but hasn’t produced a bearish divergence yet. The recent candles from Sept. 25-27 look like “three white soldiers”, a bullish pattern, and the latest one is a spinning top / shooting star, a warning. A bearish engulfing candle could pull back to $45.95 or mid-channel support at $45.20. A close above $47.45 could open up $48.28 and eventually $49.00.
Silver (XAG/USD) Trade Idea & Risk Plan
Here’s a balanced trade for everyone (novices welcome):
- Entry (conservative): Buy on dips in the $45.95-46.20 zone
- Stop: Below $45.20, just below the channel
- First Profit Target: $47.45
- Next Target: $48.30 / $49.00 region
If you prefer momentum trades: wait for a 2-hour close above $47.50 then enter on confirmation. Ride that breakout to $49.00. Watch RSI and candles at resistance. If you get a clean rejection or bearish engulf at $47.45, take profits or adjust stops.
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