Silver Rally Breaks $44.22 as Gold Strength Fuels Bullish Price Prediction
LONDON (September 23) Spot silver surged through a multi-year resistance at $44.22 early Tuesday, extending gains to $44.43, the highest level since the last major bull cycle. With gold pushing to all-time highs, silver continues to attract spillover buying from traders positioning for further U.S. rate cuts and inflation protection.
The breakout confirms the broader uptrend as silver tracks gold’s move, supported by dovish Federal Reserve expectations and renewed physical demand.
Daily Gold (XAU/USD)
Gold’s rally was triggered by last week’s 25-basis point rate cut—the first of this cycle—and further fueled by calls for aggressive easing from new Fed Governor Stephen Miran. Traders are now pricing in two more cuts by year-end, with October’s meeting carrying a 90% probability for the next move, according to CME FedWatch.
Fed Signals Anchor Bullish Case for Silver
Silver, like gold, benefits directly from falling yields and a weakening dollar. U.S. 10-year Treasury yields dropped to 4.129%, while the 2-year yield dipped to 3.597% ahead of Fed Chair Jerome Powell’s remarks and the U.S. Flash PMI releases. A softer tone from Powell could further reinforce the bullish backdrop for precious metals.
As a non-yielding asset, silver’s appeal grows in a low-rate environment. The rally is also being supported by strong physical demand, particularly from industrial buyers and Asian markets. Meanwhile, ETF inflows in both silver and gold signal renewed institutional interest.
Chart Confirms Bull Trend—But Watch for Short-Term Reversals
Daily Silver (XAG/USD)
Technically, silver is firmly in an uptrend. The chart shows consistent higher-highs and higher-lows, a classic bullish structure. However, Tuesday’s price action also suggests a potential higher-high and lower-close pattern—commonly known as a closing price reversal top. While this would not break the trend, it could signal a short-term pullback of 2 to 3 sessions, which would be standard corrective behavior.
If silver dips, momentum would shift lower only if the market breaches the last swing bottom at $41.14. Even then, major trend support remains intact at the 50-day moving average of $39.45. Until that level is broken, the prevailing strategy remains to buy dips.
Silver Outlook: Higher Highs Point to $49.81 Test
As long as gold remains supported by Fed dovishness and global demand, silver is likely to follow. With the $44.22 breakout now behind, traders are eyeing the next major target at $49.81. A temporary pullback is possible, but the broader trend remains bullish. Any close above $44.22 with confirmation from gold’s strength could trigger another leg higher toward that multi-year top.
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