Silver climbs to its highest level in 12 years

Silver prices surged to their highest levels since November 2012 on Monday, following last Friday’s impressive 6.4% daily rally, as the psychological barrier of $34.00 was breached.

The metal’s rise was driven by increased safe-haven demand amid heightened geopolitical tensions, and markets are now factoring in a 90% probability of a Federal Reserve rate cut at the November FOMC meeting.

A strong bullish signal was generated on the monthly chart after silver broke through key resistance levels at $30.00/50 (psychological / 50% retracement of the $49.78/$11.23 downtrend from 2011 to 2020), where it had been consolidating for four months.

Bullish daily indicators continue to support the positive outlook, reinforced by favorable fundamentals.

The price is currently advancing in the extended fifth wave of a five-wave sequence from the August 8 low of $26.39, with the 161.8% Fibonacci extension (33.89) now cleared.

A close above this level would confirm a fresh bullish signal, paving the way for a move toward the next targets at $35.00/05 (psychological / 61.8% Fibonacci retracement of the $49.78/$11.23 decline) and $35.369 (200% Fibonacci extension).

In the meantime, silver may pause below these key levels as daily indicators show overbought conditions, with any minor corrections ideally holding above the $32.20 zone, providing better buying opportunities.

Res: 33.89; 34.26; 35.00; 35.36
Sup: 33.51; 32.95; 32.23; 32.00