A weaker dollar coupled with improved risk sentiment led to a corrective rebound in silver prices.
2026-04-08 10:27:33
International silver prices continued their upward trend in Asian trading on Wednesday, with spot silver rising to around $77 , a new weekly high. Against the backdrop of a weakening US dollar index, dollar-denominated precious metals as a whole received support, with silver, as a highly volatile asset, showing particularly strong performance.
One precious metals analyst pointed out: "The current rise in silver prices is mainly driven by the weakening of the US dollar, but there is a lack of sustained capital inflows, and the upward momentum still needs to be observed."
From a macro perspective, the situation in the Middle East has seen a temporary easing, with the US announcing a two-week suspension of military operations, significantly improving market risk sentiment. At the same time, relevant parties have released positive signals regarding the passage of key shipping lanes, reducing market concerns about energy supply disruptions. The Strait of Hormuz handles approximately 20% of global maritime energy transport , and its expected recovery directly impacts global asset pricing logic.
Against this backdrop, crude oil prices have fallen significantly, reducing energy cost pressures and easing inflation expectations. This change has had a significant impact on monetary policy expectations, softening market expectations that the Federal Reserve will maintain high interest rates, thus putting sustained downward pressure on the US dollar. Market surveys indicate that the market currently expects a 40% probability of an interest rate cut this year, an expectation that provides support for precious metals.
Some institutions believe that "the combination of declining inflation expectations and policy uncertainty has led to a volatile but generally strong trend in silver prices."
However, it's worth noting that despite the continued rise in silver prices, there hasn't been significant chasing activity in the market, and trading momentum has slowed. This suggests that the current rise is more driven by macroeconomic factors than by widespread capital inflows. If the US dollar experiences a technical rebound, silver may face downward pressure.
From a technical perspective, the daily chart shows that silver is still in an upward trend, but it has entered a high-level trading range in the short term. The key support level is around $75.50 ; a break below this level could trigger a further pullback. Resistance is concentrated around $78.50 ; a break above this level could test the $80 psychological level . From a momentum perspective, upward momentum has weakened, and the market has entered a consolidation phase. Observing the 4-hour chart, the price is showing a sideways structure after an upward oscillation; if it cannot effectively break through $78.50, it may maintain range-bound trading in the short term.
Overall, silver's current price movement is driven by both a weakening dollar and changing policy expectations, but the foundation for its upward trend remains fragile. Until macroeconomic variables become clearer, prices are more likely to fluctuate at high levels.
Editor's Summary : The core drivers of this round of silver price increases are a weakening US dollar and a rebound in market risk appetite, while changes in inflation expectations also support prices. However, structurally, the current rise lacks sustained momentum, and the market remains in a wait-and-see phase. Future trends will depend on the direction of the US dollar, the Fed's policy signals, and changes in the geopolitical situation. If the US dollar continues to weaken, silver still has room to rise; but if the macroeconomic environment reverses, prices may enter a correction phase. Overall, short-term trading will likely be characterized by high-level fluctuations, while the medium-term direction still needs new fundamental catalysts.
One precious metals analyst pointed out: "The current rise in silver prices is mainly driven by the weakening of the US dollar, but there is a lack of sustained capital inflows, and the upward momentum still needs to be observed."
From a macro perspective, the situation in the Middle East has seen a temporary easing, with the US announcing a two-week suspension of military operations, significantly improving market risk sentiment. At the same time, relevant parties have released positive signals regarding the passage of key shipping lanes, reducing market concerns about energy supply disruptions. The Strait of Hormuz handles approximately 20% of global maritime energy transport , and its expected recovery directly impacts global asset pricing logic.
Against this backdrop, crude oil prices have fallen significantly, reducing energy cost pressures and easing inflation expectations. This change has had a significant impact on monetary policy expectations, softening market expectations that the Federal Reserve will maintain high interest rates, thus putting sustained downward pressure on the US dollar. Market surveys indicate that the market currently expects a 40% probability of an interest rate cut this year, an expectation that provides support for precious metals.
Some institutions believe that "the combination of declining inflation expectations and policy uncertainty has led to a volatile but generally strong trend in silver prices."
However, it's worth noting that despite the continued rise in silver prices, there hasn't been significant chasing activity in the market, and trading momentum has slowed. This suggests that the current rise is more driven by macroeconomic factors than by widespread capital inflows. If the US dollar experiences a technical rebound, silver may face downward pressure.
From a technical perspective, the daily chart shows that silver is still in an upward trend, but it has entered a high-level trading range in the short term. The key support level is around $75.50 ; a break below this level could trigger a further pullback. Resistance is concentrated around $78.50 ; a break above this level could test the $80 psychological level . From a momentum perspective, upward momentum has weakened, and the market has entered a consolidation phase. Observing the 4-hour chart, the price is showing a sideways structure after an upward oscillation; if it cannot effectively break through $78.50, it may maintain range-bound trading in the short term.
Overall, silver's current price movement is driven by both a weakening dollar and changing policy expectations, but the foundation for its upward trend remains fragile. Until macroeconomic variables become clearer, prices are more likely to fluctuate at high levels.
Editor's Summary : The core drivers of this round of silver price increases are a weakening US dollar and a rebound in market risk appetite, while changes in inflation expectations also support prices. However, structurally, the current rise lacks sustained momentum, and the market remains in a wait-and-see phase. Future trends will depend on the direction of the US dollar, the Fed's policy signals, and changes in the geopolitical situation. If the US dollar continues to weaken, silver still has room to rise; but if the macroeconomic environment reverses, prices may enter a correction phase. Overall, short-term trading will likely be characterized by high-level fluctuations, while the medium-term direction still needs new fundamental catalysts.
- 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.
