Silver Rallies 1.58% as Dollar Stalls at Seven-Week High

Spot silver settled at $66.26 on Friday, a gain of $1.03 or 1.58%. The metal traded within a range of $65.26 to $67.34 during the session. This move followed a stall in the U.S. Dollar Index, which reached its highest level since July 30 before losing momentum.

The DXY finished the day at 100.215, down 0.02% from the prior close. Silver responded to the dollar’s failure to extend gains by rallying $2.08 from its session low. The metal closed well above its morning trough despite persistent macroeconomic headwinds.

Dollar Stalls Trigger Silver Rebound

The dollar index opened Friday near 100.56, pushing silver down to $65.26. As the greenback rolled over to 100.165, silver buyers entered the market. The metal subsequently broke through $66 and $67, touching $67.34 before settling lower.

The inverse correlation remained tight during the early hours of trading. Each tick higher in the dollar corresponded to a move lower in silver. The reversal occurred only when the dollar could not hold its early high. Silver treated this stall as a signal to accumulate.

Technical Levels Define Current Trend

The main trend on the daily chart remains downward. However, the minor trend turned upward on Thursday. Silver closed above the 50-day moving average at $62.97, supporting the short-term bounce. A break below the swing bottom at $62.31 would signal a resumption of the downtrend.

The main trend will turn upward only if silver trades above the September 9 top at $68.33. The intermediate range spans from $54.78 to $71.18. The retracement zone between $62.98 and $61.04 has acted as support in recent sessions.

Macro Headwinds Persist Despite Rally

The 10-year U.S. Treasury yield closed near 5%. The Federal Reserve raised rates three days prior to the session. These factors typically weigh on precious metals. Silver rallied anyway, indicating strong demand from buyers.

According to GN auto markets/commodities: silver prices, the market did not wait for bearish macro conditions to disappear. Buyers acted on the dollar’s inability to extend its gains. The silver price forecast suggests that a sustained dollar push above 100.564 would test the recent gains.