Silver Breaks Out of Key Trend Range with Multiple Supporting Fa

Silver Breaks Out of Key Trend Range with Multiple Supporting Factors



Technical View

1. Silver has broken out above the triangle’s upper boundary, signaling a potential shift from consolidation to bullish momentum.
   
   
2. A decisive break above the July peak at 39.50 would confirm an uptrend and open the way toward 41.50, aligned with the 161.8% Fibonacci retracement.
   
   
3. Failure to clear the psychological barrier at 39.00, however, could trigger a pullback toward 38.00 or the ascending trendline support.
   
   
4. Notably, a golden cross across multi-period EMAs has just formed, reinforcing the bullish bias.
   
   Fundamental View
5. The key driver for an uptrend in precious metals, including silver, is political turmoil after President Trump’s attempt to fire Fed Governor Lisa Cook raised concerns over the Fed’s independence. Markets now price in an 85% chance of a September rate cut, up from 78% a week ago.
   
   
6. The dollar weakened on rate-cut expectations, supporting metal prices, though it stabilized slightly mid-week.
   
   
7. Markets are awaiting US Q2 GDP data (3% growth expected) and July PCE inflation, the Fed’s preferred gauge, which is likely to remain above the 2% target.This is likely to create volatility in the market.
   

Analysis by: Krisada Yoonaisil, Financial Markets Strategist at Exness