Silver and gold continue to surge at a dramatic pace. Rising fiscal and trade risks, persistent geopolitical tensions, and growing political uncertainties, along with the need for protection against the lower-rate–higher-inflation dynamic and record-high US market capitalization-to-GDP ratios, are driving more traders and investors into precious metals. 

Silver has an additional advantage relative to gold: increased demand expectations from renewable energy, fueled by rising energy needs, and stronger industrial demand linked to a potential manufacturing recovery and the AI boom. 

Silver – Weekly Timeframe 

After peaking in 2011, silver dropped significantly in value until the Covid-19 shock. Years of cumulative upward pressure then triggered a boom, pushing silver near 30. The second leg of the surge came with gold’s breakout, which has kept silver in the spotlight ever since. 

The bullish trend has now turned parabolic, and two key resistance levels are converging. This could prove a very difficult area for silver bulls to break in the medium term. The first level is 44.25, the lower top from 2011, and the second is the 150 percent Fibonacci expansion of the Covid-19 rally at 45.25. Together, the 44.25–45.25 zone forms a major resistance band. 

RSI is also flashing warnings. Since 2011, silver has always undergone a downward correction whenever the quarterly (12-week) RSI strongly pushed above 70. These corrections sometimes lasted only weeks but at other times stretched into years. In the current bull market, the most likely scenario is a short-term bearish correction before silver makes new highs and attempts to break through the 44.25–45.25 zone. However, an instant breakout cannot be ruled out. 

In the long term, silver still has substantial upside potential supported by both technical and fundamental factors. The current technical setup is shaping into a cup formation. After a breakout through 44.25–45.25, silver could test the all-time high just below 50 and then form a handle to complete the cup pattern. If the formation breaks to the upside, the long-term target could be in the 85–90 range. Any potential pullbacks should therefore be viewed as buying opportunities. 

(Gold/Silver Ratio) 

It is also worthwhile to check the gold/silver ratio to understand where the market and the broader economic situation stand. Because of the I want to update our chart again. The ratio has been rising at a very shallow slope since ancient times, with a slightly steeper slope in modern economic history. Since the 1980s, the ratio has surged whenever a major economic or geopolitical event occurred, and then retreated back toward the midpoint of the long-term trend. 

A similar situation is unfolding now. After spiking above 90 earlier this year, the ratio has since retreated below that level as tariff risks were absorbed by markets and deals. This pullback could extend toward the 77–80 range, suggesting silver still has the advantage over gold in the medium term. 

Historically, silver has fallen harder than gold during precious metal corrections. However, if a correction comes this time, silver may prove more resilient this time.