Silver (XAG/USD) extended its rally on Monday, gaining for a second consecutive session to reach fresh four-year highs around $48.75. The metal remains well-supported, with downside attempts so far contained above last week’s highs near $48.30.
Safe-haven demand boosts precious metals
Precious metals are in strong demand as investors seek safety amid a combination of global risk factors. The ongoing United States (US) government shutdown—now expected to drag on—has amplified risk aversion, while growing political uncertainty in France and expectations of looser monetary policy in Japan have further strengthened demand for non-yielding assets such as gold and silver.
As the US Dollar remains firm on safe-haven flows, silver continues to attract interest as an inflation hedge and alternative investment, benefiting from the broader bullish sentiment across the metals complex.
Technical analysis: bulls eye the $50 psychological level
From a technical standpoint, XAG/USD continues to trade within an ascending channel that originated from the mid-September lows, maintaining a strong upward structure. However, the 4-hour Relative Strength Index (RSI) is showing signs of bearish divergence, suggesting that buyers should exercise caution as momentum begins to wane.
Immediate resistance is seen between $49.24 and $49.30, where the 161.8% Fibonacci extension of the September 17–24 range converges with the upper boundary of the channel. A clear breakout above this zone could open the path toward the key psychological barrier at $50.00.
On the downside, the $48.30 area—corresponding to the September 3 high—continues to act as firm support. A drop below this level would bring the $47.60 zone into focus, followed by trendline support near $46.90.
