Silver Eyes $90 but Must Clear Key Resistance First

Silver Eyes $90 but Must Clear Key Resistance First

Silver’s price structure at $80.64 suggests a potential move toward $90, but the technical setup demands patience as the metal consolidates near multi-decade highs.

What to know

• Silver is trading at $80.64/oz with a gold/silver ratio of 62.3, well below the long-term average - suggesting silver has been outperforming relative to gold.

• The technical structure points to a possible extension toward $90, which would represent an 11.6% move from current levels and the highest price since the early 1980s.

• Today’s US Core PCE and GDP data releases could inject fresh volatility into precious metals heading into next week.

What happened

Silver is consolidating around $80.64/oz after a run that has taken the metal into territory not seen in over four decades. The current price structure is forming what looks like a bullish continuation pattern, with higher lows stacking up on the daily chart and the metal holding comfortably above its 50-day moving average.

The $90 target aligns with a measured move projection from the breakout above the $50 level - the old 2011 high that acted as a ceiling for over a decade before finally giving way. That breakout was the technical event of 2025 for silver, and the follow-through has been textbook. The metal has essentially doubled from its 2024 lows near $22, and the momentum indicators, while elevated, have not yet reached the kind of extreme readings that preceded prior major tops.

Who’s involved

The composition of the silver market has shifted meaningfully over the past 18 months. Industrial demand - particularly from solar photovoltaics and electrification infrastructure - has created a structural deficit that underpins prices even when speculative interest wanes. The Silver Institute has flagged consecutive years of supply shortfall, and above-ground inventories have thinned considerably.

On the investment side, ETF holdings have been rebuilding after years of outflows. Managed money positioning on COMEX remains net long but is not at the stretched extremes that would signal an imminent reversal. Retail interest has also picked up, with physical premiums on coins and bars holding firm.

Central bank gold buying - which has pushed gold to $5,023/oz - has had a spillover effect on silver sentiment. The gold/silver ratio sitting at 62.3 is notably compressed compared to its five-year average near 80, reflecting silver’s relative strength. Some traders view any ratio below 60 as a signal that silver is overextended, but in previous secular bull markets the ratio has compressed to 40 or even lower.

Why it matters

Silver at $90 would carry enormous psychological weight. It would put the metal within striking distance of its all-time nominal high near $50 from January 1980 - adjusted for inflation, that peak equates to roughly $190 in today’s dollars, which means silver remains deeply undervalued on a real basis even at current levels.

The macro backdrop supports the case. Today’s Core PCE and GDP releases are landing in a market already priced for persistent inflation and moderating growth - a stagflationary mix that historically favours hard assets. With the Federal Reserve caught between sticky prices and slowing activity, real interest rates could drift lower even without explicit rate cuts, removing one of the key headwinds that capped silver for years.

The industrial demand story also differentiates this cycle from prior silver rallies. In 2011, the move was almost entirely investment-driven. Today, over 55% of annual silver demand comes from industrial applications, giving the metal a fundamental floor that did not exist in previous cycles.

What comes next

The $83-$85 zone is the immediate resistance band to monitor. A clean weekly close above $85 would open the path to $90 with minimal technical friction. On the downside, $75 has emerged as solid support - any pullback to that level would likely attract aggressive buying.

Beyond the chart, COMEX warehouse stocks matter. Registered silver inventories have been declining steadily, and any acceleration in drawdowns could trigger a supply squeeze narrative that amplifies upside momentum. The gold/silver ratio breaking below 60 and holding would confirm silver’s leadership within the precious metals complex - a signal that has preceded the most explosive legs higher in past bull markets.

This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.