Silver Prices Surge in a Week: What Does It Mean for the Market?

Over the past week, the performance of silver prices (XAG/USD) has shown a solid recovery trend, successfully closing the trading week above the psychological level of US$80 per ounce, up from the previous week’s close of US$75.34. Based on transaction records, this precious metal recorded a weekly gain of 6.78%. This positive performance over the week is inseparable from fluctuations in the US dollar exchange rate and movements in US government bond yields, in line with market participants’ responses to the release of the latest employment data, which affects expectations for the direction of The Fed’s interest rate policy. US Labour Department Data and Policy Implications The US Department of Labor reported the addition of 115,000 new jobs in April, with the unemployment rate stable at 4.3%. The release of this data indicates that job growth is not aggressive enough to trigger new concerns regarding further monetary policy tightening. This situation pressured US bond yields and pushed the dollar index down by 0.3% to 97.90. The dollar’s weakening directly benefits silver, making it a more attractive instrument for investors holding foreign currencies. Nevertheless, the future direction of movement will heavily depend on certainty regarding The Fed’s steps ahead. Price Dynamics and Industrial Demand Silver’s current price resilience is also supported by its dual characteristics as a hedge asset and industrial metal. Around half of global silver demand is absorbed by the manufacturing sector, such as the production of solar panels, artificial intelligence infrastructure, and semiconductors. On the supply side, the market is still shadowed by China’s export restrictions in place since January 2026. As a historical movement note, silver prices once hit a record high of US$121.64 at the beginning of the year before experiencing a 22% correction following the escalation of geopolitical tensions in the Strait of Hormuz in February. Projections and Technical Levels From a technical analysis perspective, this week’s silver rally has brought prices to test several key areas. If the strengthening momentum continues and prices manage to break through resistance levels at US$82.13 and US$82.50, silver has the potential to chase the next target at US$84. Conversely, the current crucial support level is in the range of US$73.14 to US$80. If prices come under pressure again and settle below US$80, the short-term recovery trend risks losing its momentum. On a macro level, several economic models project silver potentially reaching US$77.58 by the end of this quarter, with a long-term target towards US$91.04 within the next year.