WHILE gold may have dominated headlines over the past year, surging to as high as US$3,500 per ounce in April 2025, it has since entered a consolidation phase. After an extended rally, gold is taking a breather. During this pause, silver has emerged as the standout performer, recently breaching a 14-year high of US$39. This development has captured the attention of traders and technical analysts alike, as various indicators now point to the potential further upside in silver prices.
Silver’s recent strength first gained traction in early June when it surged more than 9 per cent within a single week. Following that sharp advance, prices have entered a month-long consolidation, forming a symmetrical triangle pattern. This is a classic bullish continuation pattern that often appears after a strong uptrend.
On Jul 11, silver broke out of this triangle formation, reinforcing the bullish outlook. The breakout projects a technical price target near US$41.70, and as long as prices hold above the US$37.30 level, which now acts as a key support zone, the bullish case remains intact.
Trend-following indicators further validate the bullish case. Since recovering from a sharp pullback in April, silver prices have consistently stayed above the 100-day exponential moving average. This moving average has served as a dynamic support level, and its ability to hold suggests that it has consistently attracted buying interest. Such price behaviour typically signals sustained bullish momentum and helps reinforce confidence among momentum traders.
Momentum indicators also point to a constructive outlook. The Relative Strength Index (RSI), a widely used technical tool that measures the strength of price movements, remains comfortably above the neutral 50 level. This positioning indicates bullish momentum is still in play. Importantly, the RSI has yet to enter overbought territory, suggesting that there may still be room for prices to climb before any signs of exhaustion emerge.
While past performance is not indicative of future results, silver’s recent breakout and supportive trend structure present an attractive technical set-up. With gold in a consolidation phase, silver and other precious metals such as platinum and palladium may continue to take the lead, especially if the key support levels hold firm. A sustained move above US$39 for silver could pave the way towards testing the next major resistance zone near US$42, offering further opportunities for traders looking to ride the momentum.
The writer is senior strategist, Phillip Nova
