XAG/USD Holds Bullish Momentum as Warsh Speech Looms

Summary:

Silver extends its rally toward $71.00, reaching a two-month high after recovering sharply from Thursday’s pullback. Kevin Warsh’s Jackson Hole speech is now the main event, particularly after Fed officials called for tighter policy amid persistent inflation.

Buy XAGUSD

EXP

Trading

70.302

ENTRY

78.500

TGT

65.000

66.391 -2.857 -4.13%

Point

Flat

65.000

CLOSING

70.302

ENTRY

78.500

TGT

Silver is extending its advance into Friday, with XAG/USD climbing for a second consecutive session and approaching the $71.00 mark. The metal has recovered strongly from Thursday’s dip into the mid-$67.00 region, lifting prices to their highest level in two months and keeping Silver on course for a fourth straight weekly gain.

The latest move highlights the resilience of the broader rally. Buyers quickly returned after Thursday’s pullback, preventing the correction from developing into a more substantial reversal and bringing the recent highs back within reach.

Attention now shifts almost entirely to Fed Chair Kevin Warsh’s Jackson Hole speech, which could provide the next major catalyst for precious metals. Investors are looking for greater clarity after July’s Fed meeting offered limited guidance over the direction of monetary policy.

The backdrop heading into Warsh’s remarks has become increasingly hawkish. Kansas Fed President Jeffrey Schmidt and Cleveland Fed President Beth Hammack both pushed the case for tighter monetary policy on Thursday, with their comments following stronger US PCE inflation figures a day earlier.

That creates an important test for Silver. A more aggressive message from Warsh could strengthen expectations for higher US interest rates and challenge the metal’s recent advance. On the other hand, any reluctance to reinforce the hawkish tone coming from other policymakers could give buyers additional room to extend the four-week rally.

For now, Silver’s ability to rebound rapidly from the $67.00 region and return toward $71.00 keeps the short-term momentum firmly positive. With prices already at two-month highs, the reaction to Warsh could determine whether XAG/USD can turn its recent recovery into a fresh breakout or enter another period of consolidation.

Technical Analysis

The Silver 4-hour chart remains decisively bullish, with XAG/USD pressing against one of the most important resistance areas on the chart after an impressive recovery from the July lows. Price is currently trading around $70.23, putting the metal directly at the $69.80–$70.30 resistance zone that previously acted as a major turning point.

The broader structure has changed considerably over the past several weeks. After bottoming around the $55.50–$56.00 region, Silver established a sustained sequence of higher highs and higher lows, reclaiming $61.70 and subsequently breaking through the $65.50–$66.00 zone. Importantly, that former resistance area has since held as support, reinforcing the shift toward a stronger bullish structure.

The immediate battle is now around $70.00. Silver has spent several sessions consolidating beneath this barrier rather than producing a meaningful rejection, while repeated tests have gradually absorbed selling pressure around the highs. The latest push through the zone increases the possibility that the consolidation is developing into a continuation breakout.

A sustained 4-hour close above $70.30 would provide stronger confirmation that buyers have cleared the current ceiling. The first extension could carry XAG/USD through the $71.00 area, after which the chart offers considerably more room for the rally to develop. The larger technical objective sits around $78.50–$79.00, where the next major supply zone is located.

Some short-term retracement should not be ruled out following the recent advance. A breakout followed by a successful retest of $69.80–$70.00 would actually strengthen the bullish setup by confirming that former resistance has turned into support. If that area fails, Silver could rotate back toward the recent consolidation lows around $67.50, with $65.50–$66.00 representing the more important structural support below.

Overall, the technical picture continues to favour buyers. Silver is challenging major resistance after a sustained series of higher highs and higher lows, and a confirmed breakout above $70.30 could mark the beginning of another substantial leg higher toward the $78.50 region.

TRADE RECOMMENDATION

BUY SILVER

ENTRY PRICE: $70.30

STOP LOSS: $65.00

TAKE PROFIT: $78.50

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Warren Takunda

Analysts

Warren Takunda, a seasoned finance leader specializing in the Middle East, is a trusted senior analyst with a proven track record. As head of the finance team, he excels in financial planning, analysis, and reporting. Warren's expertise in financial modeling and investment analysis delivers valuable insights to clients.

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P/L Ratio

0.73

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XAUUSD, EURUSD, GBPUSD

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XAG/USD Holds Bullish Momentum as Warsh Speech Looms

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