Silver Price Soars Past $55, Eyes $60 on Comex Outage, Dovish FED and Tightening Supply
Silver continues to outperform the broader metals space, driven by a powerful breakout and tightening supply conditions.
Quick overview
- Silver is experiencing a significant breakout, surpassing the $54.40–$54.50 range and rising over 12% this week.
- Market disruptions, including a major outage at the Comex, have contributed to increased volatility in silver trading.
- The technical structure remains strong, with the 50-day SMA providing support and the previous resistance level expected to act as new support.
- Tight supply conditions and strong demand, fueled by dovish Federal Reserve expectations, are driving silver prices higher.
Live SILVER Chart
Silver continues to outperform the broader metals space, driven by a powerful breakout and tightening supply conditions.
Breakout Pushes Silver Toward Higher Price Targets
Silver is powering higher after reclaiming and extending beyond the key $54.40–$54.50 band, rising more than 5% on the day and over 12% this week—handily beating Gold’s gains. The clean breakout leaves little resistance before the $60 region and is supported by a strong technical structure that has held since late October. Price continues to respect its ascending trendline and has been forming a steady stream of higher lows, underscoring persistent demand.
Market Disruptions Add Fuel To Volatility
Momentum accelerated after an extended outage at the Comex, where a “cooling system failure,” according to CME, forced an 11-hour halt in futures trading and contributed to sharp, illiquid moves during the Thanksgiving period. Neuberger Berman’s Christopher Kramer noted that the issue rippled across several global futures markets, particularly in industrial metals.
Technical Levels Turn Supportive
Daily chart structure remains constructive. The 50-day SMA has repeatedly cushioned declines, guiding the trend higher. With the breakout now complete, the former ceiling near $54.50 is expected to convert into new support during any pullback.
Silver Chart Daily – The 50 SMA Acting As Support
Demand And Tight Supply Strengthen The Trend
Silver’s rally is further supported by dovish Federal Reserve expectations and strong industrial and investment demand. Spot XAG/USD trades near $56.40, up more than 12% this week and on track for a seventh consecutive monthly gain. Supply constraints are intensifying the move, with Shanghai Futures Exchange inventories dropping to their lowest levels since 2015 and physical turnover on the Shanghai Gold Exchange slipping to a nine-year low.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save