On Monday, spot silver jumped 2.9% to $29.12, the highest level since February 2013, boosted by expectations on a solid economic recovery and growing optimism over fiscal stimulus. In fact, Bloomberg data showed that total holdings of known silver ETFs increased by more than 30% during April-July, suggesting a strong investors' demand.
In late July, we pointed out that spot silver has shown a critical upside breakout. From a technical point of view, it maintains a strong bullish momentum as shown on the weekly chart. There is no signs of a bearish RSI divergence yet, after it has broken above a 6-year consolidation range. The level at $25.50 might be considered as the nearest support, while the 1st and 2nd resistances are expected to be located at $31.00 and $35.30 respectively. Alternatively, a break below $25.50 may open a path to the next support at $22.90.