Introduction
Silver has hit the first target from our 28 July analysis. The descending triangle broke upward, and price has run from the mid-57 area to 71.470, clearing the 71.24 objective we set at the time. That objective was the slow moving average, which has since risen to 73.601, and that is now the level directly overhead. Price is sitting on the 71.353 horizontal with the session low at 69.210 beneath it. A close above 73.60 opens 80. A close below 69.20 puts the fast moving average at 62.76 back in range.
The August Rally, in Context
- Silver has gained more than 18% in August and has outpaced gold on a percentage basis, compressing the gold-silver ratio. The move began from support in the mid-$57 area in late July.
- Supply is the structural driver. The Silver Institute’s World Silver Survey 2026 forecasts a sixth consecutive annual deficit at 215 million ounces, the largest on record, with industrial consumption from AI data centre infrastructure, grid modernisation and electronics drawing down above-ground inventory faster than mine supply replaces it.
- Monetary conditions turned supportive through the second half of August. Real yields stabilised after the Treasury buyback announcement and a softer dollar lifted the precious metals complex broadly.
The bigger picture: Fed Chair Kevin Warsh delivers his first Jackson Hole keynote on Friday 28 August. Silver carries more torque than gold in both directions, so that reaction matters more here than anything on the chart.
Possible Trades
Bullish continuation
- Entry trigger: daily close above 73.60
- Stop: below 69.20
- Target: 80
Breakdown
- Entry trigger: daily close below 69.20
- Stop: above 73.60
- Target: 62.75
Trading futures involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. This analysis is for informational and educational purposes only and does not constitute financial advice. Always conduct your own due diligence and consult with a licensed financial advisor before making any trading decisions.