Silver tops $69 as dollar weakness fuels 18% monthly rally

Silver traded near $69.44 an ounce, up 1.78% on the day, after clearing the $66.80-$67 resistance zone that capped gains earlier this week, with the metal extending a recovery that has lifted it just over 18% in a month.

"The dollar decline has supported not just gold but all precious metals," Brian Lan, managing director at GoldSilver Central, said, pointing to the large shift in Treasury yields after Washington increased long-dated bond buybacks.

Silver rose 7.35% over five sessions and has climbed from July lows below $55, while gold traded near $4,331 an ounce, roughly flat for the year. The metal's tendency to amplify moves in gold remains a central feature of the rally, with XAG/USD now testing $70 as the first psychological hurdle and $72 as the next more meaningful technical test.

A sustained break through $70-$72 would strengthen the case for another leg higher, while a fall back beneath $66.80 would suggest the latest breakout has failed, according to technical analysis of daily and weekly charts.

Citi, ING See Further Upside

Citi analysts maintained a $90-an-ounce price target over the next six to 12 months, implying roughly 40% upside from recent levels near $64, alongside a short-term $75 target for the next three months. The bank expects silver's relatively soft industrial demand to be offset by stronger investment demand, with the global silver market staying in deficit through 2027 on demand from AI, 5G, and electric vehicles.

ING targets an average of $68 in the third quarter and $74 in the fourth quarter as the market deficit persists. Alexander Zumpfe of Heraeus Metals Germany expects silver to remain one of the most volatile precious metals in 2026, with an LBMA forecast range of $55-$105 and a $75 average reflecting both strong investment demand and the risk that high prices erode industrial consumption.

Momentum Builds as Fed Path Shifts

July CPI rose to 3.4% year over year, in line with estimates, lowering expectations for another Federal Reserve hike and supporting precious metals alongside a weaker dollar. "The CPI data has been encouraging," Edward Meir, analyst at Marex, said.

Silver's recovery from July lows has produced a sequence of higher lows on the daily chart, with the MACD above its signal line and the weekly stochastic turning higher from depressed levels. First support sits near $62-$63, with a wider base in the upper-$40s to mid-$50s if the breakout fails.

For traders, silver is best treated as a high-beta version of gold: sustained gains in the yellow metal alongside silver ETF inflows would offer stronger evidence that investment demand is taking control of the market.

This article is for informational purposes only and does not constitute investment advice.