Silver maintained its upward trend with fluctuations, awaiting a breakout from the resistance level within the trading range.
2026-05-08 13:07:50
During Friday's Asian trading session, spot silver (XAG/USD) attracted renewed buying interest after a brief pullback, with prices subsequently rebounding quickly and returning to trading near the psychological level of $80. Silver had previously experienced a technical correction from near a three-week high, but the overall upward structure remains intact, and the market currently maintains a clearly bullish sentiment.
The precious metals market has recently been supported by a weaker dollar, expectations of a Federal Reserve rate cut, and global safe-haven demand. Compared to gold, silver, with its dual attributes of safe-haven appeal and industrial demand, typically exhibits greater volatility during periods of improved market risk appetite, resulting in a significant increase in its recent price.
Silver's return to the $80 mark indicates that bullish funds are still dominating short-term price movements. Although there was some profit-taking in silver prices previously, buying support strengthened significantly during the pullback, showing that the market as a whole still prefers to buy on dips.
From a macroeconomic perspective, the market remains highly focused on US non-farm payroll data and the future path of the Federal Reserve's interest rate policy. If US economic data slows further, market expectations for a Fed rate cut may continue to rise, thereby weakening the dollar and supporting precious metal prices.
Meanwhile, although the situation in the Middle East has eased somewhat, global geopolitical risks have not been completely eliminated. Market analysts believe that as long as international uncertainties persist, the overall safe-haven demand for precious metals is unlikely to decline significantly.
Furthermore, improved expectations for industrial demand are also a key reason for the recent strength in silver prices. With continued growth in demand from the global new energy, photovoltaic, and electronics manufacturing industries, the market remains relatively optimistic about the prospects for industrial silver consumption.
The current upward trend in silver prices has gradually expanded from being driven solely by safe-haven demand to being supported by a combination of industrial demand and expectations of monetary easing. This is also a key reason why silver's recent gains have significantly outperformed those of some traditional precious metals.
From the daily chart, XAG/USD has maintained a clear bullish trend recently. Previously, silver prices successfully broke through the 50% Fibonacci retracement level of the March decline and regained a foothold above the 100-period moving average, indicating that the medium-term market trend has strengthened again.
In terms of technical indicators, the daily MACD indicator remains above the zero line, with the red bars continuing to expand, indicating that the bullish momentum in the market remains strong. Meanwhile, the RSI indicator is currently hovering around 68, approaching the overbought zone, but no obvious top divergence signal has yet appeared, meaning that silver still has room for further upward movement in the short term.
From the perspective of moving averages, the 5-day, 10-day, and 20-day moving averages have re-formed a bullish alignment, with short-term moving averages continuing to diverge upwards, providing significant technical support for silver prices. The $80 level has now transformed from a previous resistance level into a short-term support zone. It's worth noting that silver is currently approaching the 61.8% Fibonacci retracement level, which corresponds to around $83. Historically, the 61.8% Fibonacci retracement level is often a crucial area for determining the direction of the medium-term trend. If silver can effectively break through the $83 area, the market may open up further upside potential. In this scenario, the next target for silver prices could be the 78.6% Fibonacci retracement level around $88.83, or even a retest of the previous high of $96.44. However, considering that the RSI is approaching overbought territory, the market may also face some short-term technical correction. If the US dollar index rebounds or US employment data is significantly stronger than expected, silver may face some profit-taking pressure.
Editor's Summary : The silver market has entered a technically strong phase. After silver prices returned to the $80 mark, bullish sentiment has clearly strengthened, while a weaker dollar, expectations of a Fed rate cut, and improved industrial demand continue to provide medium- to long-term support for silver. From a technical perspective, both the daily and 4-hour charts maintain a clearly bullish pattern, but the important Fibonacci resistance area around $83 may determine the next direction. If the market successfully breaks through this area, the upside potential for silver may further open up; however, with the RSI approaching overbought levels, investors should still be wary of short-term high-level fluctuations and profit-taking risks.
The precious metals market has recently been supported by a weaker dollar, expectations of a Federal Reserve rate cut, and global safe-haven demand. Compared to gold, silver, with its dual attributes of safe-haven appeal and industrial demand, typically exhibits greater volatility during periods of improved market risk appetite, resulting in a significant increase in its recent price.
Silver's return to the $80 mark indicates that bullish funds are still dominating short-term price movements. Although there was some profit-taking in silver prices previously, buying support strengthened significantly during the pullback, showing that the market as a whole still prefers to buy on dips.
From a macroeconomic perspective, the market remains highly focused on US non-farm payroll data and the future path of the Federal Reserve's interest rate policy. If US economic data slows further, market expectations for a Fed rate cut may continue to rise, thereby weakening the dollar and supporting precious metal prices.
Meanwhile, although the situation in the Middle East has eased somewhat, global geopolitical risks have not been completely eliminated. Market analysts believe that as long as international uncertainties persist, the overall safe-haven demand for precious metals is unlikely to decline significantly.
Furthermore, improved expectations for industrial demand are also a key reason for the recent strength in silver prices. With continued growth in demand from the global new energy, photovoltaic, and electronics manufacturing industries, the market remains relatively optimistic about the prospects for industrial silver consumption.
The current upward trend in silver prices has gradually expanded from being driven solely by safe-haven demand to being supported by a combination of industrial demand and expectations of monetary easing. This is also a key reason why silver's recent gains have significantly outperformed those of some traditional precious metals.
From the daily chart, XAG/USD has maintained a clear bullish trend recently. Previously, silver prices successfully broke through the 50% Fibonacci retracement level of the March decline and regained a foothold above the 100-period moving average, indicating that the medium-term market trend has strengthened again.
In terms of technical indicators, the daily MACD indicator remains above the zero line, with the red bars continuing to expand, indicating that the bullish momentum in the market remains strong. Meanwhile, the RSI indicator is currently hovering around 68, approaching the overbought zone, but no obvious top divergence signal has yet appeared, meaning that silver still has room for further upward movement in the short term.
From the perspective of moving averages, the 5-day, 10-day, and 20-day moving averages have re-formed a bullish alignment, with short-term moving averages continuing to diverge upwards, providing significant technical support for silver prices. The $80 level has now transformed from a previous resistance level into a short-term support zone. It's worth noting that silver is currently approaching the 61.8% Fibonacci retracement level, which corresponds to around $83. Historically, the 61.8% Fibonacci retracement level is often a crucial area for determining the direction of the medium-term trend. If silver can effectively break through the $83 area, the market may open up further upside potential. In this scenario, the next target for silver prices could be the 78.6% Fibonacci retracement level around $88.83, or even a retest of the previous high of $96.44. However, considering that the RSI is approaching overbought territory, the market may also face some short-term technical correction. If the US dollar index rebounds or US employment data is significantly stronger than expected, silver may face some profit-taking pressure.
Editor's Summary : The silver market has entered a technically strong phase. After silver prices returned to the $80 mark, bullish sentiment has clearly strengthened, while a weaker dollar, expectations of a Fed rate cut, and improved industrial demand continue to provide medium- to long-term support for silver. From a technical perspective, both the daily and 4-hour charts maintain a clearly bullish pattern, but the important Fibonacci resistance area around $83 may determine the next direction. If the market successfully breaks through this area, the upside potential for silver may further open up; however, with the RSI approaching overbought levels, investors should still be wary of short-term high-level fluctuations and profit-taking risks.
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- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
