Silver prices experienced a sudden and sharp surge during the evening session on May 11, with spot silver skyrocketing by approximately 7%. The dramatic upward move appeared unexpectedly, as both crude oil markets and U.S. equities showed little significant movement at the time.
No immediate catalyst for the sharp rise in silver has been identified. However, market analysis suggests a technical perspective: silver prices may be undergoing a corrective phase. Since a steep decline in January and another drop following the initial outbreak of conflict involving Iran, silver has struggled to regain momentum. In March, the metal fell to a three-month low of $60.94 per ounce, marking a roughly 50% drop from the historic high of $121.64 recorded on January 29. Since then, silver prices have stabilized.
Over the past six weeks, silver has reclaimed two key technical levels, specifically breaking through what is known as a downtrend line—a diagonal line connecting a series of price peaks that helps identify trend direction. A breach of this line typically signals a weakening of the downward trend. The most recent break above the downtrend line occurred last Wednesday, contributing to a three-day rally that pushed silver prices close to April's high of $83.04. In technical analysis, previous highs and lows, especially on a monthly scale, serve as significant reference points. The $82–$83 range has recently acted as a resistance zone for silver's upward movement.
If silver can sustain a breakout above April's peak, it would indicate that prices have established a foothold at a higher level, potentially raising expectations for a further advance toward $90. The $90 mark is viewed as an important psychological barrier due to its round-number status. Beyond that, silver could even challenge March's high of $96.38.
A sustained move above April's high would also break the pattern of "lower highs" that has persisted since January's sharp decline. In technical terms, a sequence of lower highs is generally interpreted as a bearish signal. Conversely, if silver fails to surpass April's high, the pattern of declining peaks would be reinforced, leading market participants to anticipate further downside. A drop below the $70.00–$71.00 support area could particularly intensify selling pressure.