Silver hits a new record high, supported by robust safe-haven demand and mounting concerns over supply constraints

Silver surged to new record highs on Monday, extending its sharp uptrend that has accelerated over the past few sessions.

The metal’s decisive break above the key psychological $50 barrier—for the first time in decades—generated a strong bullish signal, with further momentum fueled by President Trump’s latest threats to impose 100% tariffs on all Chinese imports.

Silver continues to mirror gold’s rally amid strong safe-haven demand, while additional support comes from growing fears of supply shortages as demand outpaces expectations and inventories continue to decline—London silver stock has dropped by 33% since 2021—indicating tightening market conditions.

Bulls cleared the $52 mark in less than 24 hours after breaking $51, marking the fastest move between consecutive round-number milestones in the metal’s history.

Although overstretched daily indicators warn of potential corrective action, momentum remains firmly positive, with no clear signs of exhaustion yet.

Given the exceptionally supportive fundamentals, any pullbacks are expected to be shallow and likely represent consolidation before another push higher.

This outlook is reinforced by the recent completion of a multi-decade cup-and-handle pattern, following the final breakout above $50—a level that capped rallies in both 1980 and 2011—signaling a major technical shift.

Silver now appears to be in the extended third wave of the five-wave advance from the March 2020 low at $11.23, targeting the Fibonacci 200% projection at $55.62.

Initial support lies at the broken FE 176.4% level ($51.13), followed by $51.00 and $50.00, areas expected to contain any dips and preserve the broader bullish structure.

Res: 52.25; 52.94; 53.50; 54.00
Sup: 51.52; 51.13; 51.00; 50.00