Silver is on set for another surge
After silver prices surged significantly on Monday, the market followed by a consolidation phase, forming a symmetrical triangle pattern. Typically, this pattern signals a continuation of the prevailing trend, but confirmation is required on a breakout—ideally sustaining above the previous high at 34.80.
If the price hold above 35.00, it would confirm a 12-year high, which could attract more speculative flow and drive prices even higher.
Should the breakout align with the prevailing uptrend, the projected target based on the flagpole's height is around 36.50—marking the next key target zone.
Fundamentally, the upcoming Non-Farm Payroll (NFP) on Friday, June 6, could serve as a key catalyst. With broad market participation expected, the data has the potential to push silver prices to new highs.
Additionally, ongoing geopolitical tensions in Eastern Europe show no signs of resolution, which continues to support demand for safe-haven assets like precious metals. This provides further upward momentum for silver.
However, any signs of progress in geopolitical negotiations would pose a downside risk to this bullish outlook.
Analysis by: Krisada Yoonaisil, Financial Markets Strategist at Exness
