With Waller and Williams leaning dovish lately, the market didn’t need much convincing. Silver became the obvious trade for anyone looking to front-run a softer Fed.
Traders Chase the Breakout
CNBC’s read was spot on: silver looked like a coiled spring finally let loose. Volume was some of the heaviest this year, signaling broad participation — not a retail-only chase.
Once resistance gave way, the chart-driven money jumped too. Kitco’s Jim Wyckoff noted that the setup had turned bullish over the past week, and the follow-through confirmed it. When you mix softer data, technical release, and a market already tight on supply, moves like this tend to run.
Supply Crunch Gets Real
Reuters highlighted what might matter most: the physical market is extremely tight. Chinese inventories are at decade lows. India’s demand hasn’t eased. Some users have resorted to flying silver in because shipping can’t meet delivery timelines.
Industrial buyers — especially solar and EV manufacturers — keep pulling metal from a shrinking pool. When supply is this thin, rallies don’t fade easily because real users can’t step aside.
What Traders Are Watching Next
XAGUSD is now up roughly 84% year-to-date, blowing past gold’s performance and putting in one of its strongest yearly runs in decades. Friday’s push didn’t feel like blow-off behavior — buyers stepped in on dips even after the CME interruption.