Silver prices are rising, now close to $75.50, with a possibility of reaching $83.10. The 14-day Relative Strength Index shows there’s good momentum without being overbought. The support level is at the nine-day Exponential Moving Average (EMA) of $72.38. On Monday, during European hours, silver gained nearly 4% as it moved upward in a clear pattern, showing continued bullish sentiment. Both the nine-day and 50-day EMAs indicate an upward trend, reinforcing this positive momentum. The path to resistance at $83.10 is clear. If silver breaks through this level, it could revisit previous highs of $85.87 reached in December 2025. However, if it closes below the upward trendline around $72.10, this could signal a correction toward the 50-day EMA at $60.85. Several factors influence silver prices, including geopolitical events and economic changes. Silver’s demand in industries like electronics and solar energy plays a big role, along with shifts in interest rates and the behavior of the US dollar. Silver’s performance often mirrors gold’s. A high Gold/Silver ratio may indicate that silver is undervalued compared to gold, which can affect market decisions. Currently, silver is showing strong bullish momentum at around $75.50 due to recent geopolitical events. Increased safe-haven flows followed the US intervention in Venezuela late last year, supporting an upward trend for silver in the near term. Technical charts illustrate a clear rising channel, indicating the path ahead is upward toward $83.10. Derivative traders might think about buying call options with strike prices below this target. The immediate support at the nine-day EMA of $72.38 is a key level to watch for any potential breakdown. Additionally, expectations for looser monetary policy from the Federal Reserve boost the bullish outlook. Futures markets suggest there’s more than a 70% chance of a 25-basis-point rate cut by the end of the first quarter. Lower interest rates usually reduce the opportunity cost of holding assets that don’t pay interest, like silver. It’s essential to note the strong industrial demand for silver, expected to grow until 2026. Global industrial demand surged by over 11% in 2025, primarily due to record investments in solar panel production and the electric vehicle market. This solidifies price support, even if safe-haven demand decreases. A significant risk to this positive outlook is the strength of the US Dollar, which benefits from safe-haven flows. The Dollar Index (DXY) rose more than 3% in the last quarter of 2025, posing challenges for dollar-priced commodities. Traders should monitor this closely, as a strong dollar could limit silver’s rally. Furthermore, the relationship between silver and gold adds another perspective. The Gold/Silver ratio has tightened significantly since mid-2025, when it was above 80:1. It’s now around 58:1, meaning silver is performing better relative to gold. This trend could continue as long as both industrial and safe-haven demands remain strong.

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