Silver: Rally stretched near term – OCBC

OCBC strategist Christopher Wong describes Silver’s recent surge toward USD87–88/oz as driven mainly by technical momentum. He notes industrial metals are also better bid and that softer US–China rhetoric could support Silver further. However, overbought RSI and “buy the rumour, sell the fact” risks argue for near-term caution with resistance seen around 90–92.60.

Overbought signals and profit risk

"Silver rally looks stretched near term."

"Silver extended it run higher (+13% on 5d% change), with spot holding around the $87–88/oz area after breaking above the recent $83–84 resistance zone. The move looks less rates driven as yields were firmer."

"The move higher looks more driven by a mix of technical breakout momentum and possibly, pre-positioning ahead of the Trump–Xi meeting, especially as other industrial metals were also better bid. "

"A softer tone on US-China rhetoric on tariffs, supply chains or critical minerals would be more directly supportive for silver given silver’s industrial exposure. "

"Silver last seen around 87. Bullish momentum on daily chart intact though RSI is in overbought territories. This can suggest that the rally may be vulnerable to profit-taking. Support at 81.10 (100 DMA), 76/77 (21, 50 DMAs) and 70 levels. Resistance at 90, 92.60 levels (38.2% fibo retracement of Oct low to 2026 high)."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)