Silver prices are hovering around $78.00 during the Asian session, down 0.40% for the day. However, silver remains above the previous low of $77.00, which suggests support for bullish traders. The 100-hour Simple Moving Average (SMA) at about $75.65 is essential for short-term trading. Indicators like MACD and RSI show stabilizing momentum, hinting that buying on dips could be a good strategy. If prices drop below $75.00, they may fall toward the mid-$74.00 range, establishing a base for silver. Several factors impact silver prices, including geopolitical issues, interest rates, and the performance of the US Dollar. Silver is heavily used in industries such as electronics and solar energy, which can boost demand and influence prices. Economic performance in the US, China, and India, where silver is widely used, can also affect price movements. Silver often tracks gold’s price, and the gold/silver ratio reveals their relative values. A higher ratio might mean silver is undervalued compared to gold, while a lower ratio could indicate the opposite. As of today, January 8, 2026, silver remains steady around $78.00. The current technical trend suggests buying on dips toward the support line near $77.00, which may be a good entry point for bullish investors. Buying call options or modest long futures contracts could be wise if prices approach these support levels. The crucial pivot point is still the 100-hour moving average around $75.65. If silver stays above this level, the upward trend looks promising. This positive outlook is backed by recent industrial data. The latest US ISM Manufacturing PMI unexpectedly rose to 50.8, indicating growth and increased demand for industrial metals. Additionally, a report from the Solar Energy Industries Association noted a 15% year-over-year rise in panel installations, reflecting strong silver consumption. Looking back at the last quarter of 2025, the Federal Reserve’s dovish approach has helped boost precious metals, keeping the US Dollar Index near a six-month low of 101.50. A weaker dollar makes silver cheaper for people using other currencies, usually raising its price. However, it’s important to have a risk management plan in place. If silver moves decisively below the $75.65 pivot point, our positive view could change, potentially leading to a sharp price drop. In that case, we would consider buying put options to protect long positions or even shorting. The gold/silver ratio also supports this outlook, currently at a high 85. Comparing this to averages from 2024 and 2025 suggests silver is undervalued against gold. This may prompt a shift toward silver, possibly leading to better performance in the upcoming weeks.

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