Silver Turning Positive – Breakout Ahead?

Silver is gaining traction again as dollar weakness offers fresh support and buyers step back into the market. On the daily chart, the cup-and-handle formation is becoming more pronounced, and the current upward push raises the question of whether a clean breakout is finally underway. The key level to watch remains the USD 54.50 zone, as a decisive close above it could clear the path for a stronger bullish move.

A softer dollar environment continues to help, as it improves global purchasing power and often attracts fresh flows into precious metals. At the same time, improving inflation expectations keep silver relevant as a hedge, especially with investors preparing for potential policy shifts later in the year. The industrial side of the story also matters: demand from solar, electronics, and EV-related sectors remains strong, and any upbeat economic indicators could reinforce the case for higher prices. When equities trade in a risk-on mood, silver tends to benefit as part of the broader commodities cycle, and that dynamic is currently in play as well.

If the breakout fails, the tone could shift quickly. Weak economic data would raise concerns about industrial demand, while a rebound in the dollar or rising bond yields could cap momentum. These factors, combined with the possibility of profit taking after a solid run, might pull silver lower again. Still, as long as major support levels hold, the market keeps a constructive bias, and a confirmed breakout above 54.50 would likely be the trigger for the next strong leg higher.