Silver (XAG/USD) rose 2.13% to about $86.50 in Monday’s European session. The move was supported by uncertainty over US trade policy, after a US Supreme Court ruling against President Donald Trump’s tariff approach. The court said Trump went beyond his authority by using the International Emergency Economic Powers Act (IEEPA) to justify tariffs. It blocked the so-called reciprocal tariffs and called them “illegal”.

Dollar Weakness Supports Silver

After the ruling, the US Dollar weakened. The US Dollar Index (DXY) fell 0.35% to about 97.45, which tends to support dollar-priced metals. Geopolitical risks also helped as US-Iran tensions continued over Tehran’s nuclear programme. The Wall Street Journal reported that Trump is considering a limited military strike on Iran to pressure it into a nuclear deal. Technically, silver held above the 20-day EMA at $82.78 and pushed toward the February 4 high of $92.21. Support was seen near $70.00. Meanwhile, the 14-day RSI stayed in the 40.00–60.00 range, pointing to a broader sideways trend. In 2025, silver surged to near $86 as trade policy uncertainty spiked and the US Dollar weakened. Today, conditions are very different. As of late February 2026, silver is trading at a more subdued $23.80. Many of last year’s unique geopolitical drivers have faded, so traders need a new approach. The sharp drop in the US Dollar Index seen in 2025 is no longer supporting precious metals. The DXY is now holding firm around 104.5, backed by a Federal Reserve that is keeping interest rates steady. That creates a headwind for a non-yielding asset like silver, unlike the conditions that drove prices higher last year.

Geopolitics Industrial Demand And Strategy

In 2025, intense US-Iran tensions gave silver a strong safe-haven boost. In 2026, geopolitics is less of a direct driver. With diplomacy more active in current hotspots, much of the fear premium has faded. As a result, traders need other reasons to justify long positions. The main support for silver in 2026 is strong industrial demand, which mattered less last year. The Silver Institute recently forecast that photovoltaic demand will rise another 15% this year, building on record demand for solar panels and electric vehicle manufacturing in 2025. This helps create a fundamental floor under prices, even without safe-haven buying. For derivatives traders, this points to a range-bound market. Strong industrial demand is countered by a firm dollar and steady interest rates. Strategies such as selling covered calls against physical holdings or long futures may help generate income between support at $22.00 and resistance at $25.50. Buying straddles ahead of major China industrial production releases could also be a way to trade a potential breakout from that range. Create your live VT Markets account and start trading now.

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