Image Source: Pixabay
 

Silver is on the rise and has been outperforming gold quite a lot over the last week, and it looks like an extended leg up is still in progress. Silver is surging higher due to a mix of factors: a weaker U.S. dollar and expectations of Fed rate cuts, safe-haven and inflation-hedge demand, strong industrial use (especially from solar and EVs), persistent supply deficits, and gold’s rally pulling silver along. On top of that, speculative flows and the metal’s relatively small market size amplify the move.

If we look at the updated monthly chart from Elliott wave perspective, it also suggests an ongoing bull cycle is now targeting the high from April 2011, which we see it as a wave (III) due to a broken base channel upper line. So, we should be aware of more gains towards 50 area, which could be the next major level and a potential area for a new retracement, maybe sometime in 2026.
 

XAGUSD(silver) Monthly Chart
 

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