Silver Price Outlook as Metal Tests Major Resistance

• Silver jumped in overnight trading and is now testing the $50.50–$52.80 resistance zone—the same levels it hit on the way down. The chart tells the story: an ascending channel, a break above previous consolidation, and strong momentum indicators. RSI’s above 70, MACD’s elevated, showing real buying pressure. This kind of strength can stick around for a while, and if silver clears this resistance, the next stop could be $54.50—potentially a new all-time high.

• While this rally plays out, policymakers are looking at tax proposals that could hit metals trading and mining operations. We’re talking potential increases on trading income and resource sector taxes. Smaller refiners and derivatives traders are nervous—higher taxes could trigger financial stress, bankruptcies, and a talent exodus as specialists head to friendlier jurisdictions.

• The regulatory pressure has sparked serious debate. Industry groups are running the numbers and warning that new taxes on commodity gains could actually hurt state revenues if trading activity drops off. They’re pushing back, suggesting profit taxes would be a smarter move—keeping budget revenues steady without killing market liquidity or jobs.

• These tax discussions are part of a bigger regulatory overhaul affecting reporting requirements, capital expenditure rules, and profit treatment for mining companies. Analysts expect ripple effects: potential job cuts, lower income tax revenue if employment shrinks, and shifts in corporate tax depending on how companies react with their investment strategies.

• Silver’s knocking on the door of its resistance ceiling, and traders are watching to see if momentum carries it to $54.50. At the same time, regulatory proposals are moving forward, creating a crossroads where market dynamics and policy decisions could both shape where prices head next.

Source: TBones