As risk aversion continues to rise, silver prices have surged for four consecutive days, reaching new highs.
2026-01-14 13:50:59
Silver prices (XAG/USD) continued their strong performance during Wednesday's Asian trading session, rising to near $92 and marking their fourth consecutive day of gains.
As geopolitical uncertainty intensifies, demand for safe-haven assets remains strong, providing sustained support for silver prices. Currently, market sentiment is significantly influenced by tensions in the Middle East. Geopolitical instability, coupled with the risk of external intervention, has triggered investor concerns about regional security and energy supplies.
In an environment of declining risk appetite, silver, along with other precious metals such as gold, has attracted capital inflows. Meanwhile, uncertainty surrounding the US monetary policy environment has also been a significant factor driving up silver prices.
Recently, discussions about the Federal Reserve's policy independence have intensified, causing a significant weakening of the US dollar. Market concerns have arisen that if the central bank's independence is compromised, it could adversely affect the stability of the financial system and sovereign credit assessments.
Against this backdrop, safe-haven assets generally performed strongly. Although several major central bank officials subsequently expressed public support for the Federal Reserve, and the US dollar rebounded rapidly, silver did not significantly give back its gains, indicating that safe-haven funds still have strong stickiness in their allocation.
Overall, the current trend in silver prices is driven more by sentiment and risk premiums than by short-term fundamental changes.
From a technical perspective, silver prices are currently trading within a clear upward channel, with the daily chart showing a well-maintained bullish trend. Prices have consistently held above major moving averages, and short- and medium-term moving averages are aligned in a bullish pattern, indicating that buying power remains dominant in the market.
In terms of momentum indicators, the 14-day Relative Strength Index (RSI) has risen to 74.77, which is in the typical overbought range and has further increased from the previous 72.52, indicating that the upward momentum is still strengthening.
However, this also means that the room for further significant short-term gains is narrowing. If the RSI gradually declines and stabilizes around 70, it will help the market consolidate its gains through sideways movement, thus creating conditions for a more stable upward trend later.
Conversely, if the RSI quickly surges back to the extreme level of 85.90, silver prices may face a more severe technical correction due to exhaustion of momentum.
Regarding key price levels, $90 constitutes an important psychological and technical barrier. If it is effectively broken and held, the upside potential will be further unlocked. On the downside, the support level to watch is the $86-$87 range. If this area is breached, the short-term correction may widen.
Editor's Note:
Silver's current strong performance is primarily driven by a concentrated release of safe-haven demand. Given the coexistence of geopolitical uncertainties and policy risks, the willingness to allocate funds to precious metals is unlikely to cool significantly in the short term.
However, it is worth noting that silver's technical indicators have clearly entered the overbought zone, and the "slope" of the price increase is becoming steeper, which usually means that the risk of volatility is increasing simultaneously.
In the short term, the cost-effectiveness of chasing the rally is decreasing, and the market is more likely to digest the gains through high-level fluctuations or pullbacks; the medium-term direction still depends on whether the risk aversion sentiment can continue and further changes in the dollar's trend.
As geopolitical uncertainty intensifies, demand for safe-haven assets remains strong, providing sustained support for silver prices. Currently, market sentiment is significantly influenced by tensions in the Middle East. Geopolitical instability, coupled with the risk of external intervention, has triggered investor concerns about regional security and energy supplies.
In an environment of declining risk appetite, silver, along with other precious metals such as gold, has attracted capital inflows. Meanwhile, uncertainty surrounding the US monetary policy environment has also been a significant factor driving up silver prices.
Recently, discussions about the Federal Reserve's policy independence have intensified, causing a significant weakening of the US dollar. Market concerns have arisen that if the central bank's independence is compromised, it could adversely affect the stability of the financial system and sovereign credit assessments.
Against this backdrop, safe-haven assets generally performed strongly. Although several major central bank officials subsequently expressed public support for the Federal Reserve, and the US dollar rebounded rapidly, silver did not significantly give back its gains, indicating that safe-haven funds still have strong stickiness in their allocation.
Overall, the current trend in silver prices is driven more by sentiment and risk premiums than by short-term fundamental changes.
From a technical perspective, silver prices are currently trading within a clear upward channel, with the daily chart showing a well-maintained bullish trend. Prices have consistently held above major moving averages, and short- and medium-term moving averages are aligned in a bullish pattern, indicating that buying power remains dominant in the market.
In terms of momentum indicators, the 14-day Relative Strength Index (RSI) has risen to 74.77, which is in the typical overbought range and has further increased from the previous 72.52, indicating that the upward momentum is still strengthening.
However, this also means that the room for further significant short-term gains is narrowing. If the RSI gradually declines and stabilizes around 70, it will help the market consolidate its gains through sideways movement, thus creating conditions for a more stable upward trend later.
Conversely, if the RSI quickly surges back to the extreme level of 85.90, silver prices may face a more severe technical correction due to exhaustion of momentum.
Regarding key price levels, $90 constitutes an important psychological and technical barrier. If it is effectively broken and held, the upside potential will be further unlocked. On the downside, the support level to watch is the $86-$87 range. If this area is breached, the short-term correction may widen.
Editor's Note:
Silver's current strong performance is primarily driven by a concentrated release of safe-haven demand. Given the coexistence of geopolitical uncertainties and policy risks, the willingness to allocate funds to precious metals is unlikely to cool significantly in the short term.
However, it is worth noting that silver's technical indicators have clearly entered the overbought zone, and the "slope" of the price increase is becoming steeper, which usually means that the risk of volatility is increasing simultaneously.
In the short term, the cost-effectiveness of chasing the rally is decreasing, and the market is more likely to digest the gains through high-level fluctuations or pullbacks; the medium-term direction still depends on whether the risk aversion sentiment can continue and further changes in the dollar's trend.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
