Silver (XAG/USD) rose on Tuesday after earlier losses. Ongoing geopolitical and economic risks supported prices, but a firmer US Dollar capped further gains. Silver traded near $87.80 after rebounding from a daily low of $84.96. Silver has climbed nearly 23% over the last four trading days. It hit its highest level in almost three weeks on Monday. This rebound followed a corrective drop from the late-January record high near $121.66. The daily chart suggests a mildly bullish near-term outlook. Price has moved back above the rising 50-day Simple Moving Average (SMA) and is still above the 100-day SMA. Both averages sit in the low-to-mid $80s. The Relative Strength Index (RSI) has steadied just above 50 after recovering from mid-range levels. This points to improving momentum without showing overbought conditions. Average True Range (ATR) has fallen from recent peaks, signaling lower volatility. Price action may shift toward steadier moves rather than sharp swings. Support is near the 38.2% Fibonacci retracement at $86.05, based on the $64.08 low and the $121.66 high. Below that, the 23.6% retracement at $77.64 is the next support. Resistance is near the 50% retracement at $92.85, with another level at the 61.8% retracement at $99.65. The technical analysis was produced with help from an AI tool. Silver is regaining strength around $87.80 after a quick dip. This follows a strong 23% rally over the past four sessions. The market appears to be digesting the sharp pullback from January’s record high near $121.66. Fresh buying interest comes as recent economic data continues to point to sticky inflation. The January 2026 CPI report showed inflation holding at 3.5%. This supports the view that central banks may pause further rate hikes, which can help non-yielding assets like silver. Technically, the move back above the 50-day moving average signals improving strength. With volatility cooling, as shown by ATR, conditions look more supportive of a steadier trend. A similar setup appeared in Q3 2025, when a sharp sell-off was followed by a gradual recovery as buyers stepped in on dips. Given this setup, buying call options with strike prices just above the $92.85 resistance level could be a reasonable approach. This can capture potential upside while keeping risk defined. The stabilizing RSI, still below overbought levels, suggests there may be room for further gains. The $86.05 support level is key to watch. A clear break below it would suggest the bullish momentum is weakening. That could lead traders to hedge with puts or close long call positions to limit losses. Supporting the bullish case, the latest Commitment of Traders report shows large speculators and hedge funds increased net long positions for a second straight week. Industrial demand for silver is also expected to rise by 4% in 2026, driven by continued investment in solar panels and electric vehicle production.

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