Silver is currently trading at $90.13, showing a modest 0.08% gain over the last 24 hours after a quiet trading session. In the past week, the precious metal has seen a significant increase of 12.92%, maintaining its position near record territory following a period of strong performance that has placed it among the top-performing precious metals. Despite experiencing sharp intraday fluctuations, prices have remained elevated, indicating notable resilience in the market.
This sustained strength keeps silver firmly in the spotlight, prompting questions about whether the market is poised for another upward movement.
Schiff Highlights Strength Despite Pullbacks
Investor Peter Schiff has drawn attention to the renewed strength observed in mining stocks, particularly after an initial sell-off that coincided with pullbacks in gold and silver. He pointed out that many mining companies managed to close the trading session with substantial gains, even as gold experienced a decline of over $30 and silver fell by more than $3 intraday. Schiff expressed his expectation of a strong rally in the upcoming week, reinforcing the focus on silver's broader trend rather than short-term price volatility.
Schiff also reiterated his long-held skepticism regarding Bitcoin's performance, advocating for investors to direct their attention towards precious metals. Previously, Schiff had described the current market phase as the early stages of what he characterized as a historic bull market in precious metals.
Key Drivers Behind Silver's Recent Surge
Silver has achieved notable gains after establishing a stable position above the $80 psychological level. Earlier trading sessions saw the metal approaching $83.59, a price point close to its previous all-time high of $85.94, before upward momentum propelled prices higher. Over the past year, silver prices have appreciated by approximately 160%, supported by a confluence of macroeconomic factors and sector-specific forces.
Geopolitical uncertainty continues to bolster demand for safe-haven assets. Concurrently, expectations for potential interest rate cuts by the U.S. Federal Reserve remain a significant influence. Market participants are factoring in the possibility of monetary easing during 2026, with upcoming labor and inflation data expected to shape these expectations. A weakening U.S. dollar has also contributed positively to precious metals pricing.
Industrial demand is increasingly playing a crucial role. Silver is indispensable for the production of electric vehicles, renewable energy systems, and electronic devices. This fundamental demand, distinct from speculative trading, adds depth and substance to the current price rally.
Market Reactions to Global Events
Recent geopolitical developments have introduced an additional dimension to market behavior. Following U.S. military intervention in Venezuela and the capture of President Nicolás Maduro, the market did not exhibit a typical flight to safety. Instead, stocks, Bitcoin, and precious metals all experienced an upward trend. This unusual alignment suggested a temporary "rally across the board," reflecting a broader risk appetite rather than solely fear-driven trading patterns.
In response to increased volatility across precious metals, the CME has implemented updated margin rules to prepare for potential market stress. These measures underscore a heightened awareness of rapid price movements as silver approaches historic levels.
Outlook for Silver: Can it Reach $100 per Ounce?
The $100 per ounce level remains a significant psychological target. In the short term, geopolitical risks associated with Venezuela are expected to continue supporting demand for silver as a safe haven. President Donald Trump has indicated that further military actions could be considered if U.S. demands are not met, thereby maintaining an elevated level of uncertainty.
From a long-term perspective, a reduction in interest rates would benefit non-yielding assets like silver by lowering their opportunity cost. Persistent industrial demand, coupled with constrained supply from mining operations, could further support higher price levels. For silver to reach or surpass $100, a sustained alignment of physical demand, consistent investment inflows, and a limited supply response would be necessary.
More extreme scenarios, such as rampant inflation, widespread financial instability, or a genuine physical shortage of silver, could potentially drive prices significantly beyond this level. Analysts are closely monitoring the interplay between paper markets and the availability of physical silver.
Technical Structure Suggests Near-Term Upside Potential
Short-term technical analysis indicates that silver is holding firm above key demand levels. On lower timeframes, the market structure has shifted to a bullish bias, with prices remaining above the $88.60 zone. Analysts observing these technical indicators suggest potential upside targets near $91.80 and $93.00, provided that current support levels hold. Observed pullbacks appear to be corrective movements rather than indications of a trend reversal.
As silver trades near its record highs, volatility is expected to remain elevated. The market's focus is now on whether sustained momentum and prevailing macroeconomic forces can support this upward trajectory. The upcoming trading sessions are anticipated to provide further clarity on the market's direction.