Silver futures have broken above $68.88 resistance, extending a rally of more than 10% from a recent low near $62.45. A sustained close above $69.10 would confirm the breakout, with the Gann Square of 9 framework flagging $70 as the next key confirmation level, while a sixth straight annual global deficit keeps the fundamental backdrop supportive.
Silver futures (/SI) traded near $68.94 after touching an intraday high of $69.10, pushing through the Weekly Sell 2 level and into an important resistance level and price-discovery zone. The move caps a recovery from a $62.45 low that has added more than 10%, visible on the five-day, 15-minute chart.
Breakout tests a key resistance level
According to the analysis, the Daily VC PMI mean sits at $67.84, the primary short-term equilibrium, and silver has already cleared Weekly Sell 1 at $66.99 while testing Weekly Sell 2 at $68.88. A sustained close above the $68.88-$69.10 band would confirm the breakout, but failure to hold $68.88 could trigger a mean-reversion correction toward $67.84. Below the mean, the analysis flags Daily Buy 1 at $66.23 and Daily Buy 2 at $64.35 as accumulation zones, with weekly support at $65.11, then $62.21 and $61.32.
From a Gann Square of 9 perspective, the analysis frames $69-$70 as a key psychological and geometric zone, where acceptance above $70 would mark a major technical confirmation. The next timing window for the cycle structure extends into late August and early September, when the market could confirm whether the advance is developing into a larger impulsive leg.
A sixth straight deficit underpins the fundamentals
Silver settled around $68 on August 20 after its strongest daily percentage advance since early August, with dollar weakness and shifting Treasury yields cited as supportive for precious metals. Beyond the near-term move, the Silver Institute forecasts a sixth consecutive global silver deficit in 2026, with physical investment expected to stay strong.
Industrial demand from AI infrastructure, automobiles and power-grid investment continues to provide structural support, even as photovoltaic thrifting and substitution reduce silver consumption in the solar sector.
Buying dips favored over shorting strength
The trend stays bullish above $67.84, and a decisive breakout above the $69.10-$70 band could ignite the next momentum leg. Given the strength of the trend, the preferred approach is buying corrections into VC PMI support rather than shorting into strength.
Source: Commodities Analysis & Opinion
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