Silver jumps above \$40 to reach the highest level since 2011

Silver accelerates higher at the start of the week, rising over 2% in Asia and early Europe on Monday to break above the psychological \$40 barrier for the first time in more than a decade.

The metal extends gains to the highest level since April 2011 and pierces the Fibo resistance at \$40.68 (76.4% retracement of the \$49.78/\$11.23 downtrend from 2011–2020), building on the steep leg up from \$38.07, the higher low posted on August 27.

Momentum is driven by growing expectations of a Fed rate cut in September, with silver showing a stronger reaction than gold, while supply tightness also underpins the rally.

A daily close above \$40 is needed to confirm the bullish stance, though the advance is meeting headwinds at the \$40.68 Fibo barrier amid overbought daily studies.

In the current backdrop, dips are expected to stay shallow and likely to be seen as opportunities for positioning, with \$40 reverting to solid support, reinforced by the former multi-year top at \$39.52.

A sustained break above \$40 and \$40.68 would generate a strong bullish signal and open the way towards \$43.38 and \$44.18, the September and August 2011 highs respectively.

Res: 40.74; 41.00; 41.57; 42.00
Sup: 40.00; 39.52; 39.09; 38.72