This morning, we reported that the price of gold has risen above $4,000 for the first time in history. The surge in this safe-haven asset has been driven by political uncertainty in the United States and other countries, as well as sustained demand from central banks.

Against this backdrop, the XAG/USD chart also draws attention, showing that silver prices are following a bullish trend — though not as confidently as gold. Technical analysis provides further important insights.

Technical Analysis of the XAG/USD Chart

Seven days ago, when analysing the XAG/USD chart, we plotted a steep orange channel indicating an acceleration of growth and suggested that:

→ the market remained bullish;

→ a correction was possible — for example, towards the lower boundary of the orange channel (S2), reinforced by a bullish Fair Value Gap (FVG) shown as a purple imbalance zone favouring buyers.

Indeed, this scenario played out, and the reversal from the identified support block (as shown by the first arrow) occurred with notable momentum. The upward trend then continued, with silver prices remaining within the orange channel, which is still relevant today.

Key details to note:

→ as shown by the line marked R (Resistance), silver has struggled to gain traction around the 48.75 level;

→ as indicated by the blue lines (whose slope is decreasing), buying pressure may be weakening as bulls attempt to break through this level.

Following yesterday’s test of the lower boundary of the channel, the price (as shown by the second arrow) turned upwards — this can be interpreted as bulls having “shaken out” weak holders and regained strength to challenge the 48.75 (R) level.

On this move, they managed to:

→ overcome local resistance at 48.00;

→ form a bullish FVG zone (highlighted in orange);

→ climb into the upper half of the channel.

However, today’s move above 48.75 appears tentative — the XAG/USD chart shows no clear consolidation above this key level. That said, if political turbulence persists, new record highs in gold could well give fresh momentum to the “silver bulls.”

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