Silver’s Surge: A Powerful Rally Built on Shifting Foundations

The price of silver is experiencing a significant upward surge, propelled by a confluence of technical and fundamental drivers. During the trading session, the metal climbed to an intraday peak of $84.27 per ounce, marking a gain of more than 5% at its height. This momentum notably outpaces gold, which is trending toward $4,600 with a more modest increase of approximately 1.5%. Despite indicators suggesting the market is overbought, buying pressure continues to dominate, with profit-taking remaining scarce.

A key pillar supporting the rally is escalating geopolitical instability. Reports from Iran detailing mass protests, internet blackouts, and hundreds of fatalities have heightened global risk aversion. This environment is further complicated by discussions within the U.S. military regarding "strong military options" and potential support for demonstrators via communication services like Starlink. These unfolding events have increased market uncertainty, boosting demand for traditional safe-haven assets, including precious metals.

Federal Reserve Turmoil Undermines the Dollar

Simultaneously, institutional uncertainty in the United States is applying pressure. The U.S. Department of Justice has initiated a criminal investigation into Federal Reserve Chair Jerome Powell concerning alleged false statements related to renovation costs of the Fed's headquarters, estimated at around $2.5 billion. Powell has characterized a grand jury subpoena as a "pretext" in the interest-rate dispute with President Donald Trump. Market participants largely view this action as a politically motivated challenge to the central bank's independence, weakening the U.S. dollar and driving investors toward tangible assets. Silver is benefiting directly from these flows as an alternative monetary hedge.

Technical Breakout Triggers Further Buying

From a chart perspective, silver has executed a decisive technical move. Analysts had previously identified the $83 zone as a critical support level. This threshold was not only defended but has now served as a launchpad for the latest upward impulse. The clear breach above this resistance has triggered additional buy orders, reinforcing the bullish sentiment.

Should investors sell immediately? Or is it worth buying Silber Preis?

The primary catalysts for the current rally can be summarized as follows:

• Institutional Pressure: The investigation targeting Chair Powell is undermining confidence in the U.S. dollar.
• Geopolitical Risk: Unrest in Iran and potential U.S. responses are elevating market fear.
• Chart Breakout: Surpassing the $83 mark has generated fresh technical buying interest.
• Relative Performance: Silver is posting percentage gains substantially higher than those of gold.

Outlook: Strong Momentum Meets Consolidation Warnings

While the short-term picture remains decidedly bullish, cautionary notes are emerging. Following its best annual performance since 1979 last year and the current near-parabolic ascent, Commerzbank anticipates a consolidation at elevated levels by 2026. A technical pullback is considered a distinct possibility in this context.

For now, however, the momentum appears intact. As long as uncertainty surrounding U.S. monetary policy persists and geopolitical conflicts remain unresolved, the case for sustained demand for silver remains strong. The market is currently pricing in significant risks to the stability of the U.S. financial system, which continues to provide fundamental support for the precious metal.