Silver has delivered a decisive technical breakout, reinforcing the view that the next major leg of its bull market is now underway. Spot silver surged 6.63% to a fresh all-time high of US$85.17, breaking above its long-forming ascending triangle pattern and signalling the potential for a move towards US$100 and beyond.
The key resistance level in COMEX silver futures sat at US$83, and today’s move above that threshold confirms the breakout. While trading volume was only moderate, price action remains constructive. A stronger expansion in volume over the coming sessions would further validate the durability of this move, assuming silver holds above former resistance.
Confirmation also came from international pricing. Silver priced in euros broke decisively above €71, removing another technical barrier and reinforcing the global nature of the breakout.
A third signal completed the picture. Silver pushed above the 13,400 resistance level in the Synthetic Silver Price Index (SSPI), triggering a clean technical alignment across multiple indicators.
Gold Continues to Lead the Complex
Gold remains a crucial driver for silver and the broader precious metals sector. Spot gold rose nearly 2%, closing at a new all-time high of US$4,597.65, surpassing its previous peak from late December.
Markets are now closely watching the US$4,600 level in COMEX gold futures. A decisive close above this threshold would confirm the next phase of the rally, opening the door to a move towards US$5,000 and higher. While gold closed just shy of a confirmed breakout, momentum remains firmly constructive.
Mining Stocks Signal Strength
Precious metals equities continued to outperform, with major mining ETFs pushing to new highs — a development that has been building for several weeks following earlier breakouts.
-
The VanEck Gold Miners ETF (GDX) gained 3.41%, beginning what appears to be another strong leg higher.
-
The Global X Silver Miners ETF (SIL) jumped 4.71% on heavy volume, a clear indication that investor appetite for silver producers is accelerating.
The longer-term outlook for gold and silver miners remains firmly bullish, with the current cycle expected to extend for several years as structural supply constraints collide with sustained investment demand.
Momentum Defies Market Concerns
Notably, precious metals strengthened despite widespread caution ahead of the Bloomberg Commodities Index rebalancing, an event that typically involves heavy selling of gold and silver contracts. Contrary to consensus expectations, the sector has so far absorbed this pressure and continued higher — a bullish signal in itself.
The immediate catalyst cited by markets was news that former President Trump has initiated a criminal investigation into Federal Reserve Chair Jerome Powell related to the central bank’s headquarters renovation project. The development has weighed on confidence in the Federal Reserve and pressured the US dollar, both supportive of precious metals.
That said, the broader rally appears to be driven less by headlines and more by sustained momentum within an ongoing secular bull market.
Inflation Data in Focus
Despite the strong session, there was limited follow-through during US trading hours. Gold did not decisively clear US$4,600, and silver’s breakout occurred on only average volume. This hesitation likely reflects caution ahead of two key US inflation releases:
-
Consumer Price Index (CPI) – Tuesday
-
Producer Price Index (PPI) – Wednesday
These reports will shape expectations around Federal Reserve policy at its late-January meeting. Until greater clarity emerges, many investors are choosing to limit risk exposure.
FirstGold Outlook
Silver’s breakout, supported by strength in gold and mining equities, is an encouraging development — particularly during a week many investors expected to be challenging for the sector. However, stronger follow-through and rising volume would further confirm that this bullish momentum is sustainable.
This week’s inflation data is likely to act as the next major catalyst, potentially setting the tone for precious metals as we move deeper into the new year.
Disclaimer: The information provided in this publication is for general informational and educational purposes only and does not constitute financial, investment, or trading advice. All investments carry risk, and past performance is not indicative of future results. Readers should conduct their own research and seek independent professional advice before making any investment decisions.
