Silver is pressing against a downtrend after gold broke its own, while lower crude prices and Treasury yields strengthen the macro case for precious metals. Investing.com's analysis points to upside targets between $54.78 and $58.50 if silver breaks higher.
The Democratic blue wave in the US midterm elections has sent crude and Treasury yields sharply lower, improving the outlook for precious metals. Gold has already broken higher, and silver is near the edge of its own bearish trend.
US Vice President JD Vance acknowledged that the Iran war contributed to the heavy Republican defeat, which helped spark a huge decline in crude prices on Wednesday. Further downside for Treasury yields and the US dollar could provide a strengthening tailwind for precious metals.
Silver tracks gold, with bigger moves
Gold has broken the downtrend in place since early September, and silver tends to amplify gold's daily moves. Using LSEG data, silver's correlation with gold stands at +0.99 over the past ten sessions, easing to +0.91 over 20 sessions and +0.89 over 60.
However, magnitude matters as well as direction. Silver's beta to gold has been 1.70, 1.79 and 1.52 over those periods, so a 1% daily move in gold has typically been associated with a move of around 1.5% to 1.8% in silver.
Silver tests a downtrend after holding support
On the four-hourly chart, silver has bounced after again failing to break beneath support at $48.86 over the past week. The recovery reclaimed two minor technical levels at $51.27 and $52.67.
Now the price sits within touching distance of downtrend resistance running from the highs set in late September. A bullish breakout that sticks could target $54.78, $55.40 and $57, or even $58.50.
Without a breakout, $52.67 and $51.27 are the two immediate downside levels to watch. Momentum, though, points up: RSI (14) is setting fresh highs and is not yet overbought, while MACD has moved further above its signal line following a bullish crossover.
Source: Investing.com
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