Silver alert XAGUSD on the move again
Nope, it’s not a short squeeze this time!
Share this:
Nope, it’s not a short squeeze this time! Silver is moving higher today, up nearly 3.25%, along with other commodities, including Gold which is up 1.3% as well. Commodities, inflation and inflation expectations have been moving higher, and it seems the precious metals were the last to join the party. However, as discussed in the Week Ahead, US Fed Chairman Powell will give his semi-annual testimony on Monetary Policy to the Senate Banking Committee. Powell has been extremely dovish over the past few weeks, even as commodities, yields, and inflation expectation have been ticking high. However, Silver and Gold have not been participating in the move, until today.
What is Silver Trading and How Can I Trade Silver Prices? | Silver Trading Online
Silver (XAG/USD) has been in a symmetrical triangle since early August 2020. However, on February 1st, as rumors began to make the rounds that the precious metal was the next target for a short squeeze from a well know retail chat forum, traders tried to jump in front of them and pushed price above the triangle. Silver traded from 26.99 up to 30.08, only to have price give up 100% + of those gains the next day. Price pulled back into the triangle. Silver held the 61.8% Fibonacci retracement level from the January 18th lows to the February 1st highs near 26.40. Today, price again broke out of the top of the downward sloping trendline of the triangle!
Source: Tradingview, City Index
As price traded out of the triangle today, it halted at a horizontal resistance zone between the 50% and the 61.8% Fibonacci retracement level from the highs on February 1st to the lows on February 4th, between 28 and 28.50. The RSI is also in overbought territory, so a pullback is not out of the question. 28.00 acts as first support. Bulls may wait for a further pullback top 27.69 to enter the market, which is the over night highs. Below there, trendline line support crosses near 26.50 (which is also near the lows of February 18th). First resistance is at the 28.50 level, then the February 7th highs at 30.08. If price breaks above there, the 127.2& Fibonacci extension from the previously mentioned timeframe is 31.25.
Source: Tradingview, City Index
If commodities continue to trade higher, Silver should continue moving with the complex. However, the direction of commodities (and the US Dollar) may lay in responses of Fed Chairman Powell’s testimony on Tuesday.
Learn more about gold and silver trading opportunities.
Nope, it’s not a short squeeze this time! Silver is moving higher today, up nearly 3.25%, along with other commodities, including Gold which is up 1.3% as well. Commodities, inflation and inflation expectations have been moving higher, and it seems the precious metals were the last to join the party. However, as discussed in the Week Ahead, US Fed Chairman Powell will give his semi-annual testimony on Monetary Policy to the Senate Banking Committee. Powell has been extremely dovish over the past few weeks, even as commodities, yields, and inflation expectation have been ticking high. However, Silver and Gold have not been participating in the move, until today.
What is Silver Trading and How Can I Trade Silver Prices? | Silver Trading Online
Silver (XAG/USD) has been in a symmetrical triangle since early August 2020. However, on February 1st, as rumors began to make the rounds that the precious metal was the next target for a short squeeze from a well know retail chat forum, traders tried to jump in front of them and pushed price above the triangle. Silver traded from 26.99 up to 30.08, only to have price give up 100% + of those gains the next day. Price pulled back into the triangle. Silver held the 61.8% Fibonacci retracement level from the January 18th lows to the February 1st highs near 26.40. Today, price again broke out of the top of the downward sloping trendline of the triangle!
Source: Tradingview, FOREX.com
As price traded out of the triangle today, it halted at a horizontal resistance zone between the 50% and the 61.8% Fibonacci retracement level from the highs on February 1st to the lows on February 4th, between 28 and 28.50. The RSI is also in overbought territory, so a pullback is not out of the question. 28.00 acts as first support. Bulls may wait for a further pullback top 27.69 to enter the market, which is the over night highs. Below there, trendline line support crosses near 26.50 (which is also near the lows of February 18th). First resistance is at the 28.50 level, then the February 7th highs at 30.08. If price breaks above there, the 127.2& Fibonacci extension from the previously mentioned timeframe is 31.25.
Source: Tradingview, FOREX.com
If commodities continue to trade higher, Silver should continue moving with the complex. However, the direction of commodities (and the US Dollar) may lay in responses of Fed Chairman Powell’s testimony on Tuesday.
Learn more about gold and silver trading opportunities.
Latest market news
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
USD/JPY Q4 2026 Outlook: Hawkish Fed Pricing Clashes With Intervention Risk
The year-end tug-of-war is clear: hawkish Fed pricing supports USD/JPY, while intervention risk limits the upside.
Japanese Yen Forecast: USD/JPY 4% Rally Challenges Post-Intervention Downtrend 9 24 2026
USD/JPY momentum has shifted sharply higher, putting a major resistance confluence in focus as U.S. and Japanese event risk builds.
Oil Quietly Hands the Fed a Reason to Stay Hawkish
Oil prices and the U.S. dollar are both on the front foot as elevated energy costs feed Fed warnings that inflation may prove sticky.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.