Silver Surges to $42: Can XAG/USD Extend Its 13-Year Breakout?

Silver prices (XAG/USD) powered higher for the third straight session on Friday, hitting $42.00 for the first time since September 2011. The rally marks a multi-year breakout as momentum builds, though traders are urged to stay cautious in the short term.

Silver Hits New Multi-Year High

The precious metal is trading near the upper boundary of its monthly ascending channel, signaling strong bullish momentum. A sustained close above $42.00 could unlock further upside, but technicals suggest a brief consolidation phase is likely as the daily Relative Strength Index (RSI) flashes overbought signals.

Upside Targets in Focus

If bulls maintain control, silver could test resistance at $42.65, with the next major hurdle sitting near the $43.00–$43.40 zone. This level coincides with the 2011 swing highs, making it a key battleground for momentum traders.

Downside Levels to Watch

On the flip side, initial support lies near $41.40, while stronger demand is expected around $41.00, where the lower boundary of the channel aligns with the 200-hour Simple Moving Average (SMA). Any dip toward this region is likely to be seen as a buying opportunity rather than the start of a bearish reversal.

Outlook

With silver set to log a fourth consecutive week of gains, sentiment remains firmly bullish. However, traders may want to wait for pullbacks before adding new long positions. As global uncertainty keeps safe-haven demand elevated, the white metal looks poised to remain in the spotlight.

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