Silver Reclaims $70 to Hit Nearly Two-Month High as Monthly Gain Exceeds 20% - TradingKey

AI desk brief

Spot silver briefly cleared $70 intraday on Aug. 28, extending an August rally of more than 20% and leaving XAG among the strongest major commodities this month. The move was driven by a softer U.S. dollar, renewed safe-haven demand tied to U.S. fiscal deficit concerns, and spillover buying from gold; the article notes gold briefly approached $4,700, reinforcing cross-metal momentum. Near-term, $70 is being treated as the key pivot, with the market needing a sustained break above the $70.60-$72 zone to unlock further upside.

The article says silver had already run from around $63 on Aug. 19 to a $69.94 intraday high on Aug. 25 before another push higher, showing persistent dip-buying despite repeated failures near resistance. Christopher Wong of OCBC said a cleaner extension higher would likely require another leg lower in the U.S. dollar and Treasury yields. The piece also highlights macro support from Treasury buybacks, which pressured yields and the dollar and fed flows back into precious metals.

The main risk to the rally is sticky inflation and a less dovish Fed stance: July core PCE is cited at 3.7% y/y, with the market assigning roughly a 33.7% probability of a September hike and over 70% by year-end. Jackson Hole/Fed Chair Warsh remarks on Friday are the next catalyst. For traders, the setup is bullish but stretched; failure to hold $70 could trigger profit-taking, while a decisive breakout through $70.60-$72 would likely invite another momentum leg higher.