Silver prices soared to $32.9 per ounce on Friday, marking their highest level in nearly 12 years, driven by safe-haven demand amid geopolitical tensions and uncertainty surrounding the upcoming U.S. presidential election.
The tight race between Donald Trump and Kamala Harris has fueled market volatility, while the killing of Hamas leader Yahya Sinwar by Israeli forces has intensified concerns over broader regional conflict.
Geopolitics took center stage as Hezbollah escalated its confrontation with Israel, and U.S. Defense Secretary Austin suggested Sinwar’s death could open the door for a ceasefire.
Meanwhile, strong economic data from China, the world’s top metals consumer, further supported silver prices, alongside the European Central Bank’s third rate cut of the year aimed at combating inflation.
Adding to this, Expectations of continued central bank easing, including potential rate cuts from the Bank of England, could sustain silver’s momentum. However, prices face significant resistance as they approach multi-year highs, with the potential for correction if geopolitical risks ease or monetary policy shifts unexpectedly.
Consequently, global yields tumbled, a tailwind for the non-yielding metal. The US 10-year Treasury note yield has fallen two basis points (bps) during the day and is at 4.073% after hitting a weekly high of 4.142%.
Technical Outlook – Silver Futures
Silver prices surged over 4% last week, marking the largest gain in a month, with a high of 95,521 and closing at 95,402 compared to the prior week’s 91,690.
The chart shows prices consolidating above the key support level of 88,000, forming higher highs, signaling potential for further upside.
Silver is approaching its multi-week high of 96,493, and a sustained break above this level could target the next resistance zone at 97,400-98,200.
Failure to break this resistance may trigger a corrective move toward 94,000-92,500.
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Commodity Samachar Securities
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