Silver hits record high on demand and data

RoboForex Analysis Department RoboForex

On Wednesday, silver surged past 66 USD per ounce, setting a new all-time high. The rally was driven by a mixed US employment report, which sparked investor interest in alternative high-return assets for portfolio diversification.

The November labour market data revealed the unemployment rate climbing to 4.6% – its highest level since 2021 – even as job creation exceeded expectations.

Silver’s year-to-date gain of nearly 130% is further supported by declining inventories and robust demand from both retail investors and industrial users. In particular, expanding sectors such as solar energy, electric vehicles, and data centres are driving increased industrial consumption.

Technical analysis: XAG/USD

Four-hour chart

On the H4 chart, XAG/USD established a consolidation range around 57.65 USD. Following an upward breakout, the market has extended to 66.72 USD, with scope for further gains towards 69.79 USD. Having completed a growth impulse to 66.51 USD, a minor correction towards 64.64 USD appears possible before the uptrend resumes.

The MACD indicator supports the bullish outlook, with its signal line firmly above zero, indicating sustained upward momentum.

One-hour chart

On the H1 chart, silver completed a growth wave to 65.30 USD and has since formed a consolidation range around this level. An upward breakout has extended the move to 66.51 USD. A technical pullback towards 65.65 USD may occur; a break below this level could extend the correction towards 60.85 USD. Conversely, a rebound from 65.65 USD would favour a continuation of the uptrend toward 66.72 USD.

The Stochastic oscillator aligns with this view, with its signal line above 80 and trending upward, though nearing overbought territory.

Conclusion

Silver’s record rally reflects strong fundamentals – tightening supply, robust industrial demand, and its appeal as a hedge amid economic uncertainty. While the near-term trend remains bullish, the market is approaching overextended levels, increasing the likelihood of a short-term correction. Key support lies around 65.65 USD, with a break below potentially signalling a deeper pullback. Until then, the momentum favours further tests towards 66.72 USD and possibly 69.79 USD.

Author

RoboForex Analysis Department

RoboForex

RoboForex Analysis Department provides timely market insights, expert technical analysis, and actionable forecasts across forex, commodities, indices, and equities.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.