The previous peak was set in 1980, but this week the price of silver rose above $53 for the first time ever, as shown on the XAG/USD chart.

Bullish sentiment has been driven by political factors, sustained demand from central banks, and the metal’s growing use in modern industries such as renewable energy.

Meanwhile, media reports are adding to the sense of market frenzy, noting:
→ shortages in physical supply;
→ forced liquidation of short positions (the “short squeeze” effect);
→ bold analyst forecasts — with a CNBC survey suggesting silver could double from current levels to reach $100.

Technical Analysis of the XAG/USD Chart

In earlier analysis of the XAG/USD chart, we:
→ identified an upward channel;
→ noted that silver’s rise was slowing around the $48.75 level, though new record highs in gold could spur the “silver bulls”.

That slowdown has proved to be merely a pause before a breakout to fresh 45-year highs. The ascending channel has maintained its slope but widened upward — notably, the current all-time high sits along the upper boundary of this expanded channel.

Key observations:

→ A sharp drop of more than 5% over the past two candles signals strong selling pressure, likely linked to profit-taking after a roughly 17% rise over the past 30 days.

→ Long lower wicks on the recent wide candles (as indicated by the arrow) show active buying interest.

→ The rise in the ATR indicator became evident as the market broke through the key psychological level of $50 per ounce.

The increase in volatility means traders may need to adjust their strategies — it can also signal that a market reversal could be nearing, as extreme price swings often mark the end of prolonged trends.

For now, however, demand remains strong enough to keep the market within its upward channel:
→ bulls are likely to view the $50–50.50 area as key support;
→ bears may look to reassert control if XAG/USD attempts to climb further above $53.

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