Tuesday, 02 January 2024 12:17 GMT

Silver Blows Past $100 And Hits $103 As Speculation Takes Control Again


(MENAFN- The Rio Times) Key Points

  • Silver vaulted through $100 with almost no pause and printed about $103, a textbook“air pocket” breakout.
  • Gold stayed strong near $5,000, but silver's speed now looks more like a leveraged trade than a hedge.
  • The weekly charts are flashing classic late-cycle signals, and the risk of a violent reversal is rising.

Silver did what markets are not supposed to do at big round numbers. It crossed $100 as if it was not there, then kept going.

TradingView snapshots around 08:17 UTC showed silver near $103.219 on the 4-hour, daily, and weekly views.

The 4-hour candle range stretched roughly from $100.810 to $103.361. That is not a normal grind higher. It is a jump that signals urgency, and usually, crowded positioning.


Silver Blows Past $100 And Hits $103 As Speculation Takes Control Again
This move also rewrites the narrative of the past two weeks. Silver had led the earlier phase of the rally, then went quiet as gold took over.

Now silver is back in command, and it is doing it in the most dangerous way possible. It is accelerating after a multi-day run, not breaking out from a calm base.

The weekly chart shows how extreme this has become. Silver's weekly RSI sits near 88, deep in stretched territory.

The weekly candle is also a vertical climb, with little sign of digestion. When a market moves like that, it can keep going longer than anyone expects. But it also becomes fragile. The next big candle can be down.

Gold is not innocent either. Gold was holding near $4,988 on the daily and weekly charts, and near $4,984 on the 4-hour view.

Its weekly RSI was around 80, also elevated. Gold looks more orderly than silver, but the slope is steep, and the higher it climbs, the less forgiving it becomes.

So the real question is not whether this can go higher. It can. In markets like this, people start talking about silver at $200 and gold at $7,000. The problem is what follows.

When a rally is driven by speculation and momentum, the exit can vanish. Prices can drop hundreds of dollars in gold, or double-digit dollars in silver, in very little time.

Anyone trading this now is not playing a normal trend. They are handling a hot instrument. You can make money fast. You can also burn your hand faster.

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The Rio Times

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