XAG – Silver continues to strengthen, aiming for a record high

Silver continued its upward trend from the previous week's close, rising from $42.99 at the opening to $46.63 on Friday, closing at $45.99, a weekly gain of $2.91, or 6.76%. After breaking through the 1.618 level of $41.50, the next 2.618 level is $49.93, just $3.52 away from the all-time high of $49.51. The gold-silver cross has shown gold weakening relative to silver for several consecutive weeks, even hitting its 250-week moving average support level of 81.24 last week. If this level breaks down this week, there's a chance of a further test of the 78 level, potentially triggering a more rapid move in silver. Silver hit a low of $28 in April this year and has since risen to a high of $46.63, a cumulative increase of $18.5, or over 65%. Looking back to 2020, silver prices hit a low of $11.61, a threefold increase.

This year's highs and lows form a channel, with resistance at the top of the channel at $48.50. Currently, silver's 9-day and 25-day moving averages are at $43.58 and $41.64, respectively. A close below these levels would signal a correction. This week's upward trend is expected to continue, with an early range of $45.40 to $46.60. A breakout could test the $47.80 and $49/$50.85 levels. Support levels are $44.80 and $44.20/$42.95.

October platinum futures in New York broke through last week, a standout among precious metals. Starting from $1422, the price tested the $1530 level on Tuesday, reaching $1614.40 on Friday, a level last seen in April 2013. It closed at $1603.50 over the weekend, a weekly gain of $171.7, or 11.99%. Platinum rebounded significantly against silver on Monday, hitting its 250-day moving average. Therefore, platinum is outperforming silver, and I anticipate new highs for both products. Strategically, buy during periods of consolidation or correction, but buying high is not recommended. Platinum has consolidated for two months before rising again. Short-term support lies at $1534 and $1522, with resistance at $1630 and $1699.

Silver Forecast Range from September 29 to October 3:
Resistance: 46.60 – 47.80 – 48.40 – 49.05 – 50.85
Support: 45.40 – 44.80 – 44.20 – 43.55 – 42.95

London Silver, September 29th:
Early Trading Range Forecast: 45.80 – 46.40
Resistance: 47.05 – 47.45 – 47.90
Support: 45.35 – 44.90 – 44.25

iShares Silver Trust Silver Holdings:
September 16th – 15,217.84 tons
September 17th – 15,189.61 tons
September 18th – 15,205.14 tons

September 19 – 15,205.14 tons
September 22 – 15,368.90 tons
September 23 – 15,469.12 tons
September 24 – 15,469.12 tons
September 25 – 15,390.07 tons
September 26 – 15,361.84 tons

Any questions? contact our professional analysis team