Silver prices climbed to a new high of $99.39 per troy ounce on Friday, trading around $99.10 during Asian market hours. The XAG/USD pair stays above the rising nine-day EMA, bolstered by a strengthening 50-day EMA, indicating a continued upward trend. Technical indicators, like the 14-day RSI at 74.66, point to overbought momentum, which might lead to a pause in price growth. Despite these conditions, the uptrend continues unless the price falls below the short-term moving average. If silver holds above $99.80, it could reach $100.00. If the price decreases, support may form around the nine-day EMA at $92.42. A drop below this level could lead to further declines toward the channel’s lower boundary at about $82.00, with additional falls potentially bringing the price near the 50-day EMA at $73.14. Silver is important in various fields, like electronics and solar energy. Its price is affected by changes in the US Dollar, industrial demand, geopolitical issues, and economic situations in the US, China, and India. Silver often moves alongside gold, with the Gold/Silver ratio indicating their relative worth. Looking back, silver prices peaked around $99.39 last year, showing a strong upward trend on the daily chart. At that time, the 14-day RSI above 74 indicated the rally was too strong, leading to a significant price consolidation in the second half of 2025. As of January 23, 2026, silver is trading near $75.00, aligning with the important 50-day moving average support from last year’s high. Following recent softer US inflation data at 2.8% for December 2025, market consensus is leaning toward a Federal Reserve interest rate cut in the second quarter. This scenario makes long-dated call options on silver an attractive strategy, as lower rates often benefit non-yielding assets. The outlook for industrial demand remains positive, which was a major factor previously. Reports indicate that global solar panel installations rose by 22% in 2025, a trend likely to continue as energy policies shift toward renewable sources. Silver is a key component in photovoltaic cells, ensuring steady industrial use that supports prices. Additionally, the gold-to-silver ratio has increased significantly since the 2025 price peak, now around 88:1, well above its historical average. This suggests silver may be undervalued compared to gold, providing a potential opportunity for traders looking for assets with greater upside. There is a chance that a reversion to the mean could spark a substantial rally in silver. With prices holding near the critical long-term support level of $73.14 highlighted in last year’s analysis, traders should keep a close eye on this area. A definitive break below this level could indicate more weakness, making protective put options a wise hedging strategy. However, as long as this support remains intact, the technical and fundamental outlook seems positive for the upcoming weeks.

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