Silver prices posted a notable rise by 13% during the week’s trading, heading for extending their upward streak for a second consecutive week, hitting an all-time high of $93.51 per ounce.
Scenario 1:
Silver is currently trading above the daily pivot at $87.90. Maintaining above this level could allow the white metal to continue its record-breaking climb toward $93.85, followed by $96.80.
Scenario 2:
If silver loses its upward momentum, it may retreat to test the daily pivot at $87.90. A decisive break below this level could trigger further downside, with potential support seen at $84.23 then $81.17.
Technical levels matter, yet the broader silver trend is shaped by fundamental factors that have driven its strong rise since the start of 2026.
1: Geopolitical tensions:
1.1: Arrest of Venezuelan President:
U.S. President Donald Trump arrested Venezuelan Nicolás Maduro, causing concern in global markets and prompting investors to increase their demand for safe assets, particularly silver.
1.2: Trump’s Attempt to Seize Greenland:
The US administration’s insistence on controlling Greenland raised growing concerns among European allies, reinforcing geopolitical uncertainty in the markets.
1.3: Geopolitical Escalation between US and Iran
Iran recently temporarily closed its airspace amid potential threats from the United States in response to the crackdown on protests, heightening regional tensions.
Donald Trump also announced that any country that trades with Iran will be subject to 25% tariffs on all trade with the U.S.
2: Independence of US Federal Reserve:
The Trump administration threatened to impeach Federal Reserve Chairman Jerome Powell for his testimony before Congress last summer on a Federal Reserve construction project, which Powell considered merely a pretext to strengthen the administration’s influence over the central bank and monetary policy.
3: China’s Tariffs on Silver:
China announced that, starting January 1, 2026, it will impose strict restrictions on silver exports through a government licensing system limited to only 44 major approved companies, which has reduced global supplies and increased pressure on prices, contributing to the rise in silver.
4: Interest Rate Cut Expectations:
One of the main factors supporting silver prices is market expectations that the Federal Reserve will cut interest rates two or three 25-basis-point reductions, driven in part by President Trump’s push to stimulate economic growth.