Silver breaks through $67.45 to hit a new all-time high, can it continue to push towards $68.00?

Silver(XAG/USD) prices recently surged to a historic high of $67.45, with the market closely watching whether it can further break through the $68.00 level. Despite US Treasury yields and the US dollar index remaining strong, silver has risen against the trend, reflecting investors’ new concerns about economic prospects.

Fundamental Catalysts: Declining Consumer Confidence Sparks Safe-Haven Buying

The latest US consumer confidence survey from the University of Michigan shows households are tightening discretionary spending and are worried about employment prospects. This data shift has become an important catalyst for silver’s rise — as a traditional safe-haven asset, silver tends to be favored during times of rising economic uncertainty.

Technical Analysis: RSI Indicator Shows Strong Bullish Momentum

From the chart performance, the daily trend of silver clearly signals an upward movement. The Relative Strength Index(RSI) is in overbought territory but maintains an upward slope, indicating that momentum remains strong. This suggests a higher likelihood of continued gains, with traders generally targeting the psychological level of $68.00.

Conversely, risks also warrant attention: if XAG/USD falls below $67.00, the first support level is the December 19 low of $64.50. A further breakdown would see the swing low of December 12 at $60.82 as an important support, with the final bottom at the round figure of $60.00.

Essential Knowledge for Silver Investors: Conversion from Ounces to Grams

Silver is a widely traded precious metal among global investors, historically serving as a store of value and medium of exchange. Compared to gold, which has higher attention, many investors see silver as a tool for portfolio diversification — both for risk mitigation and as a hedge during high inflation cycles.

Regarding measurement units, the international precious metals market prices silver in ounces(oz) — one ounce equals approximately 28.35 grams. This is fundamental knowledge investors need to master for conversions. There are various ways to invest in silver: directly purchasing physical silver(coins and bars), or tracking its international market price through derivatives like exchange-traded funds(ETF).

Price Drivers Overview

Silver price fluctuations are influenced by multiple factors. Geopolitical risks or recession expectations often boost its safe-haven appeal(though not as much as gold). As a non-interest-bearing asset, silver has an inverse relationship with interest rates — prices tend to rise when rates fall. The US dollar’s movement is also crucial: since XAG/USD is priced in dollars, a strong dollar usually suppresses silver prices, while a weaker dollar favors gains.

Industrial demand is another key driver. Silver is the most conductive metal among all metals( surpassing copper and gold), with strong demand in electronics, solar energy, and other industries. The economic dynamics of large industrial sectors in the US, China(, and India), especially in jewelry consumption, also impact pricing.

Additionally, mining supply(silver reserves are far more abundant than gold), and changes in recycling rates and investment demand are important variables influencing price volatility. Silver’s correlation with gold prices is also strong — when gold rises, silver usually follows. The gold-silver ratio(how many ounces of silver are needed to equal one ounce of gold) is a useful tool for assessing relative valuation; a high ratio may suggest silver is undervalued or gold is overvalued, and vice versa.