Silver extends rally by 1.7% despite overbought RSI and dollar rebound
Attention is now shifting to the upcoming U.S. nonfarm payrolls report
Silver has continued its strong upward run into Friday’s European session, defying both technical overbought signals and renewed strength in the U.S. dollar.
As of writing, silver is trading near $36.20, a level not seen in more than 13 years. This marks a significant breakout into decade-high territory, extending this week’s gain to nearly 10%.
- Silver trades near $36.20, its highest level in over 13 years
- Thursday’s 3.7% gain adds to a nearly 10% weekly surge by Friday
- Focus shifts to U.S. payrolls data that could decide if silver hits $37.
The latest leg of the rally follows a 3.7% gain on Thursday and an additional 1.7% increase so far today. These gains come despite the dollar’s recovery since Thursday’s low, which was helped by comments from President Trump following his call with Chinese President Xi. The market interpreted the remarks as a step toward easing U.S.-China trade tensions, which gave the dollar some lift. Still, silver’s momentum has not faltered.
Silver price dynamics (Feb - June 2025). Source: TradingView
From a technical perspective, volume on the 4-hour chart has increased alongside the price surge. This indicates that traders are not only holding their long positions but are also adding to them ahead of the critical economic job data release. The rally has persisted even as the hourly RSI has entered overbought territory, showing that short-term technical pressure is not outweighing the underlying bullish sentiment.
Silver key support lies at $35.35 and $34.80 as volume rises ahead of NFP release
Attention is now shifting to the upcoming U.S. nonfarm payrolls report. The data, scheduled for release during the North American session, is expected to show job growth of 126K, down from the previous 177K. A stronger-than-expected figure would likely support the dollar and could cause silver to trim some of its gains. However, if the actual number falls below forecast, silver may extend its advance toward the $37 psychological level.
A weekly close above $37 would place silver in position to surpass its largest weekly gain of 2025, which was last recorded in April at just 11%. That would further reinforce bullish conviction and attract more momentum-based buying.
Should any pullback occur, the 50 EMA on the 1-hour chart at $35.35 and the 100 EMA at $34.80 are the immediate support zones to watch. These levels could serve as launching pads for the next upward move if price retraces before or after the data release.
Silver broke above its 2024 high and surged to $35.80 after weeks of consolidation. The breakout followed strong buying momentum and marked the best weekly gain since April.
