Silver Bulls Eye Break to Multi-Decade Highs

• Silver posted biggest daily gain since October, breaking above $34.55
• Momentum still supportive, with bulls eyeing break of $34.87
• Gold also looks constructive after reclaiming $3367 resistance

Renewed U.S. dollar weakness—sparked by a resumption of trade tensions and a reversal of month-end flows—combined with technical buying to deliver silver’s largest one-day gain since October on Monday, leaving the price on the cusp of breaking to fresh multi-decade highs.

Silver Eyes Major Bullish Break

The daily chart below tells the story, with the price springing higher like a Jack-in-the-box after clearing resistance at $33.69, likely reflecting short covering and traders buying the break.

Source: TradingView

Such was the velocity of the move, silver also cleared resistance at $34.55, leaving it within touching distance of the October 2024 high at $34.87. With RSI (14) trending higher but not yet overbought and MACD flashing a similar signal, momentum is firmly on the side of bulls—hinting there may be few better times than now for silver to break to multi-decade highs.

If the price can gain a foothold above $34.87, bulls would likely target $35.36—the high from October 2012. If that gives way, $37.46 becomes the next logical target. Those considering long setups on a potential break could place stops beneath either $34.87 or $35.36 depending on risk appetite.

If silver fails to break through, former horizontal resistance at $33.69 may now revert to acting as support, making that the key near-term downside level to watch.

Gold Bulls Set Sail for Record Retest

While silver screeched higher, gold was also glistening.

Source: TradingView

Having broken triangle resistance stemming from the record highs and cleared horizontal resistance at $3367, bulls will be angling for another run towards the record highs. With RSI (14) and MACD trending higher and in positive territory, the preference remains to buy dips and topside breaks.

$3367 now looms as a key level to build bullish setups around, offering a logical area to establish longs with a stop beneath for protection. It would be preferable to see gold retest and bounce off $3367 before entering long positions.

$3434 screens as an initial upside target, with a clean break likely to put gold on a collision course with the record highs at $3500.

-- Written by David Scutt

Follow David on Twitter @scutty