Silver’s Smashed the $66 Benchmark: A Trader’s Roadmap for XAG/USD After the Breakout

The macro trigger and why it happened now:
The latest leg higher has been fueled by softening US labor data and rising recession-style hedging, which typically pressures real yields and keeps rate cut expectations alive, conditions that have historically supported precious metals. Weaker jobs figures have also reinforced expectations of easier Federal Reserve policy, accelerating flows into silver.
The twist that makes silver different from gold:
Silver is not just a safe haven story. This rally is also being powered by silver’s role as an industrial growth metal, tied to structural demand in solar, EVs, electronics, and AI driven data center infrastructure. That dual identity matters for XAG/USD traders because silver can react to both risk off fear and future growth infrastructure narratives.
The supply problem and the quiet engine behind the spike:
Under the surface, the market is dealing with an extended imbalance. Industry tracking has highlighted a multi-year structural deficit, with supply struggling to keep pace while demand stays firm. When inventories thin out in a tight market, even normal sized buy orders can push prices sharply, and dips tend to attract physical buyers faster than usual.

Source: Investing.com


Source: Followme app's Markets feature

Why forex and CFD traders should care:
 XAG/USD is a volatility instrument. When the US dollar weakens and rate expectations shift, silver can move fast, often faster than gold, because the silver market is smaller and can amplify momentum flows. For active traders and copy traders, that means strong opportunity, but also sharper whipsaws and bigger drawdowns if risk controls are not tight.
Technically, the trend remains bullish after clearing major prior resistance zones, but momentum is running hot. Overbought conditions can trigger short pullbacks before the uptrend resumes, the classic cooldown then push behavior. Traders are watching whether price can hold above the mid $60s on dips, and whether the market can sustain acceptance above the $66 area before attempting a cleaner run toward $70.
Near term direction is likely to be driven by the usual macro trio, US CPI, Federal Reserve communication, and USD plus real yield moves. If inflation cools faster or the labor market weakens further, it supports the easier policy narrative and can extend silver’s gains. If data surprises hawkishly, silver can retrace quickly because positioning tends to get crowded after a powerful run.

A copy trader lens and how to approach silver without getting burned:
If you are following, or planning to follow a signal provider who trades metals like gold or silver, use a simple due diligence checklist:
Drawdown tolerance: Can you handle the provider’s worst historical drawdown without panic unfollowing mid-trade