Silver has been rising for five days straight, trading at around $115.10 per troy ounce during early European hours. It is getting closer to its record high of $117.74 set in January, as more people shift their investments toward safer assets. President Trump’s remarks about the falling U.S. dollar are driving interest in precious metals, including silver, which often benefits from a weaker dollar. Current policy uncertainty in Washington, including tariff threats and challenges faced by the Federal Reserve, is also fueling this momentum.

Federal Reserve’s Rate Decision

The Federal Reserve is expected to maintain interest rates between 3.50% and 3.75% following recent cuts in 2025. Attention is on upcoming policy signals. Citi predicts silver will keep performing well and has raised its three-month price forecast from $100.00 to $150.00. A Chinese silver fund has paused trading due to high demand pushing up prices. More retail investors are showing interest in silver, leading manufacturers to focus on producing one-kilogram bars instead of jewelry. Silver is a valuable metal that investors seek for portfolio diversity and protection against inflation. Several factors influence silver prices, such as geopolitical tensions, the strength of the U.S. dollar, investment demand, and its industrial use in electronics and solar energy. Silver typically moves alongside gold. The gold/silver ratio helps investors evaluate the relative worth of these two metals, informing decisions based on differences in their values.

Trends and Trading Strategies

With the current trend, silver appears strong above the $115.00 threshold, largely due to a significant demand for safe-haven assets. The current administration’s apparent support for a weaker U.S. dollar is enhancing this rally. The market also considers ongoing policy uncertainty as a major driving force for precious metals. The U.S. Dollar Index (DXY) has mirrored this trend, falling from around 107 to about 103 in the last quarter of 2025. This 4% decline has made dollar-denominated assets like silver cheaper for foreign buyers. Additionally, the Federal Reserve’s three interest rate cuts in 2025 have significantly boosted interest in non-yielding metals. For those trading derivatives, this environment suggests a bullish outlook in the coming weeks. We recommend buying call options with expirations in March and April 2026 to take advantage of the upward trend, especially as institutional targets now aim for $150.00. This strategic move offers potential for further gains despite the prevailing sentiment to “Sell America.” However, the sharp price increase has raised implied volatility to levels not seen since the market turmoil of 2024, making outright call options expensive. It’s wise to consider the high premiums when entering new long positions. A more budget-friendly strategy is to use bull call spreads. By simultaneously buying a lower-strike call and selling a higher-strike call, traders can minimize their initial investment while still benefiting from potential price increases; this approach also limits both maximum profit and cost of entry. We’ve also observed that the gold/silver ratio is decreasing, dropping from a high of 85 in late 2025 to around 70 now. This pattern suggests that silver is outperforming gold, which often draws additional speculative interest. This relative strength strengthens our positive outlook on silver compared to other precious metals. A solid industrial demand underpins this speculative interest and provides a strong price foundation. Global installations of solar panels grew about 20% in 2025, and manufacturing trends show a clear shift toward producing investment-grade silver bars. This supports both industrial and retail demand. The primary short-term risk is the Federal Reserve’s press conference this Wednesday. Any hints of a more aggressive stance than expected could cause a rapid rebound in the dollar and a quick drop in silver prices. We recommend using stop-loss orders to manage exposure around this significant event. Create your live VT Markets account and start trading now.

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