Silver rose on Wednesday after falling the day before, as buyers returned amid continued geopolitical and economic risks. XAG/USD traded near $90.25, up about 3.38%. A stronger US Dollar, however, limited the upside.
The metal is up almost 24% over the past five sessions and is trading near its highest level in almost three weeks. This comes after a pullback from the late-January record high of $121.66.
Technical Trend Remains Intact
On the daily chart, price has moved back above the rising 50-day Simple Moving Average and is still above the 100-day SMA, both in the low-to-mid $80s. This keeps the broader uptrend in place.
The Relative Strength Index is back above 50, which points to improving momentum without signaling overbought conditions. The MACD is moving toward zero as its histogram shrinks, suggesting bearish pressure is easing.
Average True Range has dropped from recent highs, showing lower volatility. This can lead to steadier moves instead of sharp swings.
Support is near the 38.2% Fibonacci level at $86.08, based on the $121.66 high and $64.08 low. Below that, the 23.6% level comes in at $77.67.
Key Levels To Watch
Resistance is near the 50% Fibonacci level at $92.87. Above that, the next level is the 61.8% retracement at $99.67.
Silver is gaining traction after the sharp pullback from the record highs near $121 in late January. A 24% jump in just five days shows dip-buyers are active, which could help form a new price floor. This rebound suggests we should revisit bullish strategies.
The main headwind is the strong US Dollar. It is being supported by the Federal Reserve’s “higher for longer” rate stance. Recent data is adding to that strength. For example, the January jobs report showed 295,000 new jobs versus 180,000 expected. This dollar strength will likely limit any runaway upside in silver for now.
It is also important to note the solid fundamental demand for silver, especially from green energy. In the final quarter of 2025, global solar panel installations rose 15% year over year. This industrial demand helps support prices even when markets are volatile.
With momentum improving and the RSI turning positive, $92.87 is the key level. A clear break above it could signal an opportunity to buy long call options or sell bull put spreads, with a more open path toward $99.67.
On the downside, risk is centered on the $86.08 support level. A sustained move below it would suggest the bullish move is fading. That makes it an important level for stop-losses or for buying protective puts to hedge long exposure.
This setup is similar to patterns seen in 2025, when strong rallies driven by inflation fears often ran into resistance as central bank policy shifted. However, the current drop in volatility suggests this rebound could be steadier than the sharp swings seen last year.
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