Silver (XAG/USD) extended its advance for a second straight session on Wednesday, climbing to intraweek highs above $51.50. A broad risk-off shift across global markets has strengthened demand for safe-haven assets, with precious metals benefiting from the latest wave of equity market selling.
Risk-off mood and weak US data support silver
Mounting concerns over a potential AI-driven market bubble have been pressuring global equity indices, prompting traders to rotate into safe assets. Additional support for silver came from disappointing US labour market data released on Tuesday, which reinforced expectations of a possible Fed rate cut in December. Lower-rate prospects typically favour non-yielding assets such as silver.
Technical analysis: Silver bulls eye the $52.00 mark
Silver has gained roughly 2.5% over the past two days, breaking above the resistance zone around $51.25, marked by the highs from November 17 and 18. The 4-hour Relative Strength Index (RSI) is holding above 50, signalling strengthening bullish momentum.
If XAG/USD sustains its position above $51.25, buyers are likely to target the November 13 low near $52.10, followed by the November 14 high at $53.65. A continued bullish extension would expose long-term resistance in the $54.60–$54.80 region.
Key support levels to watch
Immediate intraday support lies near $50.70. A break below this zone would open the path toward trendline support drawn from the late-October lows, now positioned around $49.60, with Tuesday’s low near $49.35 acting as a secondary support area.
