Silver prices have surged above the psychologically important sixty dollar level for two consecutive sessions, climbing to an eight-day peak near sixty-three dollars on Friday. The white metal has posted weekly gains exceeding five and a half percent, capitalizing on sustained weakness in the US Dollar that has made dollar-denominated commodities more attractive to international buyers.
This rally matters significantly for precious metals traders as silver often amplifies moves seen in gold due to its dual role as both an industrial and monetary metal. The current breakout above sixty dollars represents a technical reclaiming of a key round number that frequently acts as support or resistance. Traders focusing on precious metals CFDs should monitor whether silver can maintain this momentum toward the sixty-five dollar region, which technical indicators suggest could be the next upside target.
The broader Dollar weakness driving this move stems from shifting Federal Reserve expectations and recent macroeconomic data. When the greenback weakens, commodities priced in dollars become cheaper for holders of other currencies, typically boosting demand. Gold traders should expect similar bullish pressure, though silver’s industrial applications may amplify volatility in both directions. Forex pairs involving the US Dollar, particularly major crosses like EUR/USD and GBP/USD, are experiencing corresponding strength as the inverse relationship plays out across markets.
FXnCO Insight
Watch the sixty dollar level closely as a new support zone in silver, with protective stops just below this threshold for long positions targeting the sixty-five dollar breakout.
Source: FXStreet