Silver has risen to over $54.00, close to last November’s high of $54.40. It has gained 7% in just four days this week, benefiting from a weaker US Dollar and lower US yields due to expected rate cuts from the Federal Reserve. On Thursday, XAG/USD increased for the fourth straight day. US economic data exceeded expectations, with Durable Goods Orders climbing and jobless claims hitting a seven-month low. Still, futures markets suggest an 85% chance of a rate cut in December, which continues to pressure US Treasury yields and the Dollar. From a technical standpoint, the outlook for Silver remains positive. The Relative Strength Index indicates overbought conditions, but the MACD remains positive, indicating strong upward momentum. Bulls aim for the November high of $54.40, with additional resistance at $55.00 and $56.60. Support is expected around $53.50 and further down at $52.75. Silver is valued for its traditional role as a safe investment and a medium of exchange. Its price can be affected by geopolitical events, interest rates, the US Dollar, mining supply, recycling, and industrial demand. Silver is used in electronics and solar energy, and its price often follows Gold. The Gold/Silver ratio helps compare the value of the two metals. Currently, the momentum is strongly bullish, and we expect further gains in the coming weeks. The market is factoring in an 85% chance of a Federal Reserve rate cut in December, which is driving this increase. Any short-term drops should be seen as buying opportunities rather than a trend reversal. This outlook is reinforced by last week’s October 2025 CPI report, which showed core inflation at 2.7%, the lowest since mid-2023. This data supports the belief that the Fed can ease its policies, putting more downward pressure on US Treasury yields and the Dollar. As a result, non-yielding assets like silver become much more appealing to hold. We are using call options to take advantage of this upward trend, aiming to reach the resistance levels of $54.40 and then $55.00 soon. After a 7% surge this week, buying on a pullback towards the $53.50 support level offers a favorable risk-reward entry point. The Relative Strength Index is overbought, so a brief consolidation before moving higher would be a healthy sign. The fundamentals also appear strong. A recent Silver Institute report cited a 15% year-over-year increase in industrial demand from the solar sector through Q3 2025. Additionally, the gold-silver ratio has dropped below 70:1, down from over 85:1 earlier this year, indicating that silver is gaining strength against gold. This dual support from industrial and investment demand boosts our confidence in a bullish outlook.

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