Silver rose on Wednesday after falling the day before, as buyers returned amid ongoing geopolitical and economic risks. XAG/USD traded near $90.25, up about 3.38%. A firmer US Dollar limited the upside.
The metal is up nearly 24% over the past five trading days and is close to its highest level in almost three weeks. This follows a pullback from the late-January record high of $121.66.
Technical Trend Remains Intact
On the daily chart, price is back above the rising 50-day Simple Moving Average and remains above the 100-day SMA. Both are in the low-to-mid $80s, which keeps the broader uptrend in place.
The Relative Strength Index is back above 50. This points to stronger momentum without showing overbought conditions. The MACD is moving toward zero as its histogram shrinks, which suggests bearish pressure is fading.
Average True Range has dropped from recent peaks, showing lower volatility. This may 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 sits 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 regaining traction after its steep pullback from the record highs near $121 in late January. The 24% jump in just five days shows dip-buyers are active, which may help form a new price floor. This rebound is a reason to revisit bullish setups.
The main headwind is the strong US Dollar. It is supported by the Federal Reserve’s message that rates may stay higher for longer. Recent data is adding to that strength. For example, the January jobs report showed 295,000 new jobs versus 180,000 expected. This backdrop may limit any sharp upside in silver for now.
It is also worth noting that demand for silver remains strong, especially from green energy. In the final quarter of 2025, global solar panel installations rose 15% year over year. This level of industrial demand can help support prices even when markets are volatile.
With the RSI turning positive, $92.87 is the key level to watch. A clear break above it could support strategies such as buying long call options or selling bull put spreads, as the path would open toward $99.67.
On the downside, risk is centered on the $86.08 support level. A sustained move below it would suggest bullish momentum is weakening. That makes it an important area for stop-loss placement or for buying protective puts to hedge long positions.
This price action looks similar to patterns seen in 2025, when strong rallies tied to inflation fears often ran into resistance as central bank policy shifted. However, the current drop in volatility suggests this rebound may be steadier than the sharp swings seen last year.
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