Silver prices once again opened with a strong gap up during the morning Asian session today, hitting a fresh lifetime high. The market has become extremely difficult for traders to interpret, as daily volatility of 3%–4% in silver has now become common over the past two months.
On 28th October, was trading near $45.543, and since then prices have surged sharply to a new lifetime high of $72.705 per ounce during today’s Asian session, marking an impressive nearly 69% rally in just two months. Silver March futures also touched a fresh record high near $72.750 today.
In recent weeks, markets have frequently opened with gap ups during Monday’s Asian sessions, with bullish momentum continuing throughout the week. This trend has made traders increasingly cautious, as has been experiencing daily moves of 1.5%–2%, while silver continues to show much sharper 3%–4% swings.
Precious metals such as gold and silver remain in a strong uptrend, supported by expectations of future US Federal Reserve rate cuts and ongoing geopolitical uncertainties, which are driving safe haven demands.
Additionally, thin trading volumes due to year end holidays have further amplified volatility, pushing silver to new highs once again.
As highlighted in my earlier articles, such sharp and frequent price movements make intraday trading the safest and most effective approach in the current highly volatile environment.
Given these conditions, traders are extremely cautious about where and how to trade, especially in silver spot XAGUSD. In my view, this is an ideal zone to initiate sell positions strictly on an intraday basis, with disciplined stop loss. Traders holding older positions may consider averaging at these lifetime high levels and aim to exit at cost once prices correct. Post the extended rally, heavy profit booking is likely in gold and silver, with all targets expected to be achieved this week.
Intraday Trading Strategy – Silver Spot XAGUSD
- Sell zone: $72.700 – $72.800 range
- Stop Loss: $73.500
- Downside Targets: $71.300 – $71.000 – $70.000
- Timeframe: Today or next 1/2 sessions
For Holding Traders
Those holding earlier sell positions near the $69/70 range may consider adding double or triple positions at current lifetime highs and look to exit on the expected downside correction.
Conclusions
You can also refer to yesterday’s intraday sell call in gold at lifetime highs, where Target 1 has already been achieved. This further supports my view that intraday trading remains the safest and most effective strategy in gold and silver under current market conditions. Holding positions carries higher risk, as profit booking is likely very soon, and prices may correct toward the above mentioned ALL TARGETS this week.
