Silver Poised to Exceed $120 as Equity Breakout Falters

So it turns out technicals still matter.

I’ve been highlighting a $120 target for silver for months, most recently again on Monday. In fact, the first time I presented the chart projecting $120 as a long-term objective was years ago. That level has now been reached.

Silver futures peaked at $121.75 before plunging below $107, eventually stabilizing near $110. The magnitude of the intraday reversal is a stark reminder that the white metal can fall even faster than it rises.

Recall that in 2011, silver erased two months of gains in just six trading days. If history were to repeat, prices would be sitting just above $50 before Valentine’s Day. Possible? Yes—but the decline doesn’t need to be nearly as violent.

A Potential Top Forming in Silver

That said, it’s still possible silver pushes higher in the near term. The metal didn’t collapse by tens of dollars—it was simply extremely volatile earlier today. However, with the long-term target now achieved, and considering conditions in the U.S. Dollar Index and the broader equity market, there’s a growing case that silver may have just put in a top.

The equity market may be especially critical in this context. The recent rebound in the U.S. Dollar Index failed to spark meaningful declines in precious metals, but today’s selloff in equities triggered much sharper downside moves. That contrast is an important signal.

Stocks have once again been unable to hold above their 2025 highs, suggesting the rally may be exhausted. While this is another in a series of similar invalidations, the magnitude of today’s intraday decline in precious metals hints that this episode could be different.

Adding to the cautionary tone, short-term weakness in mining stocks is also notable.

I highlighted the red rectangle to illustrate how current prices in GLD, SLV, and GDXJ compare with last week’s levels. In short, gold and silver are higher, while miners are lower—exactly the type of divergence that often marks the end of a rally.

Bitcoin Selloff Gains Momentum

Another important signal is the accelerating decline in Bitcoin.

After confirming its breakdown below the flag pattern, Bitcoin fell roughly 5% today.

I previously noted that for those not yet short Bitcoin, this represented an attractive opportunity to initiate or add to positions if sizing felt insufficient. From a risk–reward perspective, that view still stands. The so-called “new gold” was perched at the edge—and has now taken its first decisive step lower.

Last but not least—gold. The yellow metal initially surged, only to reverse sharply, plunging nearly $500 on an intraday basis. When I first became interested in the precious metals market many years ago, gold’s entire nominal price was well below that amount. Time flies—and so has the price of gold. That said, it appears gravity may be about to reassert itself once again.

Sources: Golden Meadow