Silver declines after reaching $95.56 as momentum weakens following Trump’s conciliatory address at Davos

    by VT Markets
    /
    Jan 22, 2026
    ## Silver Prices and Market Dynamics Silver is a popular precious metal, known for its historical use as money and its role in diversifying investment portfolios. You can invest in silver in different ways, such as owning physical silver or trading through Exchange Traded Funds (ETFs). Several factors influence silver prices, including geopolitical events, interest rates, the behavior of the US dollar, and industrial demand. Silver’s industrial demand is notably high, especially in industries like electronics and solar energy, due to its excellent conductivity. The price of silver often follows the trends of gold, so when gold prices change, silver prices tend to do the same. The Gold/Silver ratio helps investors understand how the values of the two metals compare. ### Industrial Demand for Silver Looking back to January 2025, silver prices fell from their peak of $95.89. This decline happened after comments about Greenland reduced geopolitical tensions. The rapid rise in price slowed down, and the RSI indicator showed that momentum was waning. At that time, we focused on the $90.00 support level. Currently, the $90.00 mark is once again essential, but the overall situation has improved for silver bulls. Industrial demand for silver has exceeded expectations. Recent reports indicate that global solar panel production in 2025 used 15% more silver than initially predicted. This industrial demand, which makes up over 50% of silver consumption, provides strong support for prices. Additionally, the macroeconomic landscape is favorable, with a weaker US dollar. The US Dollar Index (DXY) has dropped by 2.5% over the last quarter after the Federal Reserve announced a pause in its rate hikes. A weaker dollar means silver becomes cheaper for overseas buyers, typically increasing demand for the metal. Create your live VT Markets account and start trading now.

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