Summa Silver Corp. (TSXV: SSVR, OTC: SSVRF, FRA: 48X)
Silver Lives Here
Silver (XAG/USD) rose to $33.15 per ounce on Tuesday, benefiting from a weaker U.S. dollar and market concerns over political uncertainty. The U.S. dollar index (DXY) fell to its lowest level since May 7, enhancing the appeal of dollar-denominated silver and gold for international buyers.
On Wednesday (May 21), silver prices extended their gains from the previous session, supported by a sluggish dollar and renewed fiscal worries in the U.S. Spot silver climbed 0.8% to $33.32 per ounce. The metal is now firmly above its 50-day moving average, with momentum shifting to the upside. Traders are closely watching resistance levels at $33.25 and $33.70—a break above these could pave the way for higher targets between $34.59 and $34.87.
This week’s rally in silver aligns with gold’s strength, as China’s gold imports in April hit an 11-month high, signaling robust demand for safe-haven assets. Additionally, Moody’s downgrade of the U.S. sovereign credit rating has heightened fiscal concerns, driving investors toward haven assets like silver.
The dollar came under pressure after Moody’s revised its U.S. credit outlook, while markets remained cautious about the Trump administration’s tax-cut policies. Meanwhile, the Federal Reserve’s cautious stance and persistent inflation expectations have bolstered precious metals. Though gold typically garners more attention, silver has shown strong momentum, riding on risk-off sentiment and dollar weakness.
Despite the recent surge, analysts suggest silver still has room to climb if macro risks persist. Tim Waterer, Chief Market Analyst at KCM Trade, noted that gold and silver could see further gains in the medium to long term, though demand may cool if trade conditions improve.
Alberto Musalem, President of the St. Louis Fed, suggested that improved trade conditions could stabilize inflation and reduce the need for rate hikes—a positive factor for silver and other precious metals. If silver can break and hold above $33.22, it may set a new multi-month high; otherwise, a pullback to support levels could follow.
