Silver Prints New All-Time High, Eyes $100 as Next Psychological Target

Summary:

Silver has set a new all-time high before consolidating, with easing trade tensions slowing momentum but strong fundamentals keeping the broader uptrend intact.

Buy XAGUSD

EXP

Trading

96.253

ENTRY

100.000

TGT

93.000

-- -- --

Point

Flat

93.000

CLOSING

96.253

ENTRY

100.000

TGT

Silver prices edged higher on Thursday, regaining some lost ground after a modest pullback earlier in the week, but the rally struggled to gather fresh momentum as improving global risk sentiment reduced immediate demand for traditional safe havens. Spot silver (XAG/USD) was last seen trading around $93.90, stabilizing below the record high near $95.89 reached earlier in the week.

The precious metal’s pause comes as financial markets reacted positively to signs of de-escalation on the global trade front. Late Wednesday, U.S. President Donald Trump appeared to soften his stance on potential trade actions against Europe, backing away from threats to impose new tariffs on several European countries. In a post on Truth Social, Trump said the tariffs scheduled for February 1 would not proceed following what he described as a “very productive meeting” with NATO Secretary General Mark Rutte. He also signaled that a broader framework agreement covering Greenland and the Arctic region had been reached, easing geopolitical and trade-related anxieties that had unsettled markets earlier this month.

That shift in tone provided short-term relief to equity markets and supported risk assets, slightly dampening the urgency for investors to rotate aggressively into safe-haven instruments such as silver and gold. However, the pullback in silver has so far been shallow, reinforcing the view that the broader bullish narrative remains firmly in place.

From a fundamental standpoint, silver continues to draw strong support from its dual identity as both a monetary and industrial metal. Unlike gold, silver’s demand profile is increasingly tied to industrial applications, including renewable energy, electronics, and advanced manufacturing, where supply constraints remain acute. Tight physical availability, particularly in investment-grade silver, has amplified price sensitivity to shifts in demand, leaving the market structurally vulnerable to upside shocks.

Moreover, investors appear reluctant to aggressively fade the rally, especially after silver has already posted a remarkable gain of roughly 32% so far this month. That performance underscores the strength of the prevailing uptrend and reflects broader concerns over inflation resilience, geopolitical uncertainty, and long-term supply imbalances.

Technical Analysis

From a technical perspective, silver remains entrenched in a well-defined bullish structure. On the 4-hour chart, prices are consolidating within an ascending channel and are currently testing the 21-period Simple Moving Average (SMA), which has acted as a near-term cap on upside attempts. While this has limited immediate follow-through, it has not meaningfully damaged the broader trend.

The 50-period SMA, located near $91.20, represents a more critical layer of dynamic support and continues to slope upward, reinforcing the bullish bias. A decisive break below this level, particularly if accompanied by a sustained move beneath the $90.00 psychological threshold, would mark a notable deterioration in market structure and could trigger a deeper corrective move.

Should such a breakdown occur, downside targets would likely extend toward the $85.00–$86.00 zone, where previous consolidation took place. A sustained move below that region would expose the $80.00 handle, signaling a more pronounced trend correction rather than a routine pullback.

On the upside, bullish traders remain focused on a clean break above $96.50. A sustained push through this barrier would likely reinvigorate momentum buying and shift attention decisively toward the $100.00 psychological level, a milestone that could attract both speculative and long-term positioning.

Momentum indicators suggest consolidation rather than exhaustion. The Relative Strength Index (RSI) has eased back to around 54, retreating from overbought territory while remaining firmly in positive ground. This cooling in momentum reduces the risk of a sharp reversal and supports the case for continued sideways-to-higher price action. Meanwhile, the Moving Average Convergence Divergence (MACD) remains above the zero line but has flattened, pointing to slowing bullish momentum and reinforcing expectations for near-term consolidation before the next directional move.

TRADE RECOMMENDATION

BUY SILVER

ENTRY PRICE: 96.25

STOP LOSS: 93.00

TAKE PROFIT: 100.00

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Warren Takunda

Analysts

Warren Takunda, a seasoned finance leader specializing in the Middle East, is a trusted senior analyst with a proven track record. As head of the finance team, he excels in financial planning, analysis, and reporting. Warren's expertise in financial modeling and investment analysis delivers valuable insights to clients.

Rank

Articless

2039

Win Rate

63.22%

P/L Ratio

0.72

Focus on

XAUUSD, GBPUSD, EURUSD

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Silver Prints New All-Time High, Eyes $100 as Next Psychological Target

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