Silver Targets $50 as Bullish Momentum Builds

• Silver just hit $49.55, jumping 2.6% and smashing through the key resistance at $49.30. The chart tells the story clearly—price broke above both the horizontal resistance zone and the 0.382 Fibonacci retracement at $48.95, and now it’s pushing toward the 0.500 Fibonacci level at $50.00. That $50 mark is the next big hurdle traders are watching, both technically and psychologically.

• Silver’s technical setup looks strong as it approaches $50. Traders are watching whether the metal can hold momentum and break through the 0.500 Fibonacci level. If silver clears $50, the path opens toward upper resistance zones around $51.06 and potentially $54.47, reinforcing the bullish outlook as the metal reaches its strongest levels in weeks.

• While silver prices climb, policy discussions are creating separate risks for commodity and extraction industries. Proposed tax changes could raise operational costs and potentially trigger bankruptcies among smaller firms, while also accelerating talent flight from sectors already facing pressure from rising financing needs. Industry analysts warn that these amendments could affect thousands of jobs and directly impact tax contributions, including personal income tax and profit tax, with projected declines tied to reduced business activity. Experts suggest that without balanced tax policy, the cumulative economic impact could be significant.

• As an alternative, the industry has proposed increasing the profit tax instead, arguing this approach would stabilize revenues without harming operational viability.

Source: Ole S Hansen