Silver prices rose more than 4% on Friday, moving back above $81.00 per troy ounce as the US Dollar weakened. The Strait of Hormuz reopening and a second round of US–Iran talks coincided with the rise, with XAG/USD at $81.82 at the time of writing.
Silver notched a fourth straight weekly gain and reached a five-week high of $83.06 before easing back towards $81.00. A daily close above $81.00 would leave $90.00 in view in the near term.
Momentum Turning Higher
The Relative Strength Index (RSI) moved above a prior peak, indicating stronger upward momentum. Near-term resistance levels are $85.44, $87.43 and $89.42, followed by $90.00.
If price drops below the support trendline around $77.65–$77.85, further falls may follow. Supports after that are the 100-day simple moving average (SMA) at $77.24 and the 20-day SMA at $73.77.
Silver prices are influenced by factors such as geopolitical risk, interest rates, and moves in the US Dollar, since the metal is priced in dollars. Demand from electronics and solar sectors, mining supply, recycling, and economic conditions in the US, China and India can also affect prices.
Silver’s strong move above $81.00 is a significant signal for us, driven by a weakening U.S. Dollar following positive geopolitical news. With momentum turning bullish, we see a clear path for further gains in the coming weeks. The rally marks the fourth consecutive week of advances, suggesting a solid underlying trend.
Strategy And Risk Levels
The dollar’s weakness is underpinned by the latest US CPI report for March 2026, which came in slightly cooler than expected at 2.8%. This reinforces the view that the Federal Reserve will likely hold interest rates steady, creating a favorable environment for non-yielding assets like silver. This fundamental support makes the current technical breakout more credible.
Given this bullish setup, we should consider positioning for a move towards the $90.00 mark. Buying call options with strike prices at $85.00 or $87.00 could offer leveraged exposure to this potential rally. The technical picture suggests these resistance levels, which are previous highs from last month, could be tested soon.
Gold has been consolidating near its highs, and the Gold/Silver ratio has now fallen to 75:1 from 82:1 earlier this year, indicating silver may have more room to run. Adding to this, the Global Solar Energy Council’s Q1 2026 report showed a 15% jump in panel installations, boosting silver’s industrial demand outlook. This dual support from both investment and industrial sectors is a powerful combination.
We should remember the pattern we saw in the third quarter of 2025, when a similar period of geopolitical de-escalation triggered a dollar sell-off. That move resulted in a 12% rally for silver over the following six weeks. A repeat performance is certainly on the table if current conditions hold.
However, we must remain disciplined and watch the key support trendline around $77.65. A decisive break below this level would invalidate the bullish thesis and could trigger a slide towards the 100-day moving average. Traders could use this level as a clear stop-loss or consider buying puts for protection if the market turns.
