Silver has taken a short-term price retreat, but a market expert expects the white metal to embark on a bullish breakout as investors continue to bet on its safe-haven appeal.
Notably, silver has risen by almost 15% in 2025. As of the close of the last session, it was trading at $34.10, down 0.8% for the day. The latest minor pullback has seen the asset retreat from the five-month high of $34.49.
Silver ready to breakout
Based on historical patterns, financial market analyst Rashad Hajiyev believes the precious metal is likely on the verge of a major breakout, he said in an X post on March 28.
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In his analysis, Hajiyev pointed to two previous breakouts, one in 2010 and another in 2020. Both instances saw massive gains in a short time frame, 133% over seven months in 2010 and 51% in just three weeks in 2020.
Based on this historical precedent, he suggested that silver’s current price action may be setting up for another explosive move.
Hajiyev stated that the key level to watch is $34.89, the October 2024 high. If silver breaks above this resistance, it could rally about 42%, pushing the metal toward an all-time high.
“Silver is on the brink of a historic breakout I believe. Previous two major breakouts happened in 2010 and 2020. <…> Why silver cannot repeat the same? he posed.
One potential high for silver is the $50 mark, which now seems possible based on the metal’s technical setup. Specifically, analysis by Gold Predictors on March 27 suggested that silver’s long-term chart pattern is establishing the bullish cup and handle formation.
The precious metal has been gradually rising within the “handle” phase, indicating a buildup of momentum that could propel it toward the key resistance level of $50.
The cup and handle pattern is a continuation pattern that resembles a bowl (the “cup”) followed by a consolidation phase (the “handle”). It suggests that after accumulation, prices may surge once resistance is broken.
In this case, silver’s price has been forming the pattern for decades, with the cup emerging between the 1980s and 2011 while the handle has taken shape in recent years. Therefore, a breakout above the current resistance could lead to a significant rally, with the analysts eyeing the $50 level as the next major price target.
Sentiment from silver bull and author Robert Kiyosaki, who believes the metal could rally 100% in 2025, supports the possibility of a price surge.
Why silver price is surging
In general, silver has been rising in tandem with gold as investors turn to historical precious metals for safety amid economic uncertainty.
The economy remains on edge amid trade tariffs triggered by President Donald Trump, who recently announced a 25% tariff on foreign autos, sparking fears of a broader economic fallout.
At the same time, falling U.S. Treasury yields and concerns over a potential US credit rating downgrade further support silver, a non-yielding asset.
Meanwhile, strong Q4 GDP growth (2.4%) and upcoming PCE inflation data will shape the Federal Reserve’s rate path, with expectations for two cuts by year-end.
Already, the metal is offering more appeal at a time when the stock market continues to trade in the red, with the S&P 500 index wiping out $1 trillion in market capitalization during the March 28 session.
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