Silver Soars Over 3% to 12-Year High; Analysts' Latest Trading Analysis

On Tuesday (October 22), the spot silver price surged by more than 3% and hit a 12-year high. FXStreet analyst Christian Borjon Valencia wrote an article analyzing the technical trend of silver prices.

Valencia wrote that due to safe-haven sentiment, silver prices still touched a 12-year high of $34.86 per ounce on Tuesday, close to $35 per ounce, despite the rise in U.S. Treasury yields. Technical indicators suggest that silver prices are expected to rise further.

Spot silver closed up 3.24% on Tuesday, at $34.847 per ounce.

During Tuesday's trading, the silver price reached a high of $34.863 per ounce, the highest point since the end of 2012.

Exinity Group's Chief Market Analyst Han Tan said: "If the precious metals' upward trend remains unchanged, silver should be able to break through above $35 per ounce before the November 5 voting day."

How will silver prices move next?

Valencia wrote that in the past three days, silver prices have broken through a series of key psychological levels, capturing the $31.00-$34.00 per ounce area, indicating that buyers are accumulating momentum. This means that the upward trend remains intact and may extend to the peak in October 2012.

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Despite the Relative Strength Index (RSI) being overbought, the momentum still supports silver buyers. Due to the steepness of the rebound, the most extreme reading of the RSI would be 80. Therefore, bulls have enough room to push up silver prices.

Valencia pointed out that the first resistance level for silver prices is $35 per ounce. Once this level is captured, the next target will be the high point of $35.40 per ounce in October 2012, followed by the high point of $44.22 per ounce in August 2011, and finally the historical high of $49.83 per ounce.On the other hand, Valencia added that, conversely, if the price of silver falls back below $34.00 per ounce, the first support level will be the low point of this week at $33.46 per ounce. Should silver continue to weaken, the next support level will be the daily low on October 17th at $31.32 per ounce.

At 08:47 Beijing time, spot silver is reported at $34.70 per ounce.