[DigitalToday reporter Kyoungmin Hong (홍경민)] Global silver (XAG) prices are up about 3 percent on a weaker dollar and a break above technical resistance, as markets watch whether it can retake the record-high $121 level reached in January.

On May 7, blockchain media outlet BeInCrypto reported that silver has broken above a major resistance zone that had capped gains for months, forming a strong continuation pattern.

The rebound is seen as coming as the U.S. dollar index (DXY) falls and short sellers in futures markets exit quickly. Market experts see a strong chance silver could recover prior losses and resume a rally toward a record high if it breaks above the upper resistance line of a descending channel.

From a technical analysis perspective, silver had entered a temporary correction after surging 167 percent from a low of $45 in October 2025 to $121 in January. The current price near $79 is above the $78 resistance line, the Fibonacci 0.236 retracement level.

If silver breaks above the upper line of the descending channel at $90, additional gains to $99 become possible. The $99 level is a key threshold that has repeatedly failed to break since the previous high, and holding that area would open a path toward the $121 record high.

The external macroeconomic environment is also supporting the bullish case for silver. The dollar’s weakness since early April lowers the cost of buying silver for foreign investors, stimulating demand. Silver also benefited as safe-haven demand for the dollar fell after the possibility of a diplomatic resolution between the United States and Iran was raised and international oil prices plunged. If the dollar index falls by an additional roughly 1.55 percent, silver’s pace of gains is expected to steepen.

According to the Commitments of Traders (COT) report, traders have reduced overall exposure but have been unwinding short positions 23 percent faster than long positions. That suggests speculative players remain optimistic on silver. If the price fails to hold the $78 level and falls, there is a risk it could slide to $60 to $64, which would weaken the current bullish scenario.

Against this backdrop, the silver market is being assessed as having entered a new upswing as a technical breakout aligns with favorable macroeconomic factors. Whether silver can successfully retake the near-term resistance at $99 and secure it as support is expected to be the key test for a rally to the $121 record high.