Silver prices have extended gains after breaking above the $70.69 level, according to technical analysis from Investing.com. The move follows a recovery from a recent low of $65.755, with the metal now trading above key resistance at $69.36 and approaching the prior swing high of $70.08.
The analysis identifies the Daily VC PMI mean at $68.42 as a critical equilibrium point. Holding above this level maintains a short-term bullish bias, with Daily Sell 1 at $69.36 already breached. Daily Sell 2 at $70.69 has now become the next major objective, and a sustained breakout could accelerate toward Weekly Sell 1 at $72.26 and Weekly Sell 2 at $74.98. Corrections are expected to find initial support around $69.36 and $68.42, while deeper pullbacks to Daily Buy 1 at $67.09 and Daily Buy 2 at $66.15 remain higher-probability accumulation zones.
Timing indicators suggest an important transition occurred around August 21, with price action accelerating in the days following. The Square of 9 geometric framework further highlights the $70–$71 region as a key inflection zone, coinciding with the prior $70.08 high and Daily Sell 2. Confirmation above this area would increase the likelihood of an extension toward the projected targets.
Fundamentally, silver remains underpinned by tight physical-market conditions. The Silver Institute forecasts a sixth consecutive annual deficit in 2026, while investment demand continues to provide support. However, macroeconomic volatility persists, with July inflation data exceeding expectations and increasing the likelihood of a September Federal Reserve rate decision that could pose short-term headwinds for precious metals. Despite this, silver remains substantially higher month-over-month, reflecting sustained underlying buying interest.
The preferred trading strategy remains to buy corrections rather than short strength. As long as silver holds above $68.42, the immediate targets are $70.69, $72.26 and $74.98. A break below the mean would shift focus to support levels at $67.35–$67.09 and ultimately $66.15.
