Our preceding analysis on Silver could not have been more wrong.
With the FOMC approaching and bouts of up-and-down action across all metals, what we thought to be a temporary top leading to a potential range was, in fact, just a retracement.
And that retracement was an opportunity not lost on Silver traders: a stark run during month-end trading took the precious metal to new record highs, grazing the $58.85 level.
The dovish repricing for the Fed’s December 10 Meeting—main catalyst of the renewed “everything-rally” (or Debasement Trade) seen throughout stocks in the past week—was fuel for a sharp rally across the entire metals complex.
However, a distinct divergence has emerged in today’s session.
Gold, Platinum, and Copper have all rejected their recent highs established on Friday, correcting lower as traders book profits.
It is a different story for Silver, which is showing remarkable relative strength, hanging less than 1% below its $58.85 record and running towards its retest.
Will it keep rallying or is the move finally over? Let’s dive into the charts to see if this breakout has legs.
Read More:
- Crypto recovery: Dead Cat Bounce or the start of a Buy-the-Dip?
- Can Platinum catch up to Gold? Platinum (XPT/USD) Price Forecast
- The US Dollar is lost in translation – Dollar Index (DXY) Outlook
Silver (XAG/USD) Multi-timeframe Technical Analysis
Daily Chart
The month-end action took Silver prices to a strong breakout after a month-and-half consolidation.
A double top did form throughout the two tests of the preceding $55.00 record, however, double top doesn’t mean instant bear market.
On the other hand, it may have acted as a contrarian-fuel for higher prices as bearish positions accumulated before the month-end rally changed the plans.
Back to current trading, bulls have brought the metal right back into its $58.00 to $60 Resistance Zone, precedingly obtained with Fibonacci Extensions (see explanation here).
With the zone extending over a $2 range, there is space for trading but what traders should look is whether prices break and close above $60 on a daily session or if prices actually close below $58, indicating some rejection.
4H Chart and Technical Levels
The price action is getting tricky as buyer strength stands strong and prices are consolidating at the highs (typically bullish) but a 4H divergence is appearing.
Levels to watch for Silver (XAG) trading:
Resistance Levels:
- Fibonacci-Extension Resistance $58.00 to $60
- December 1 All-Time Highs $56.85
- $53.50 to $54 current ATH resistance
- Potential resistance $62 to $65 (1.618 from Impulsive Move)
Support Levels:
- $53.50 to $54 Previous ATH resistance now Pivot
- Mini-support $52.00 to $52.50
- $48.50 to $49.50 2011 High Support
- October FOMC bottom $46.00 to $47.00
- $45.55 October 28 lows
1H Chart
The rangebound action is occuring much higher than last week – As higher momentum charts stand in overbought territory, short-term consolidation at the highs serve to reduce effect of overbought trading.
An ongoing move might take on the record highs reached yesterday – For intraday analysis look at the 1H 50-period Moving Average, frequently used by buyers in this uptrend.
Holding it provides entry points to join the rally, while breaking the Moving Averages gives signal of a short-term bearish reversal.
Safe Trades!
Follow Elior on Twitter/X for Additional Market News, interactions and Insights @EliorManier
Opinions are the authors’; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. The provided publication is for informational and educational purposes only.
If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please refer to the MarketPulse Terms of Use.
Visit https://www.marketpulse.com/ to find out more about the beat of the global markets.
© 2025 OANDA Business Information & Services Inc.
