Silver briefly pushed above the $89 level this week before losing some momentum ahead of $90 psychologically mark. Yet this pause appears more like consolidation than exhaustion. And, the most important signal in Silver right now is the fact that the rally continueed despite hotter US inflation data and rising expectations for tighter Federal Reserve policy.
Under normal macro conditions, a stronger Dollar and increasing expectations for an eventual Fed “insurance” rate hike would typically weigh heavily on precious metals. Instead, Silver has continued printing higher highs and higher lows while Gold remains comparatively sluggish near support around $4,700.
The divergence inside the precious metals complex suggests that Silver is trading on its industrial scarcity story. The steady compression in the Gold-Silver Ratio suggests investors are favoring Silver’s structural demand profile. Markets are focused on persistent physical deficits in Silver supply, with 2026 projected to mark another year where global demand exceeds production. At the same time, demand tied to AI infrastructure, semiconductors, and high-efficiency solar panels continues providing a powerful underlying tailwind.
More importantly, any meaningful progress toward reopening the Strait of Hormuz could trigger a broader return of global risk appetite, lower oil prices, and a softer Dollar — a combination that would significantly strengthen the industrial demand outlook for Silver while easing macro headwinds from rising Fed expectations. In that case, Silver would likely have the powerful momentum to push through $90, and probably $100 too.
Technically, further rise is expected in Silver as long as 83.01 minor support holds. Next target is 100% projection of 60.97 to 83.04 from 70.83 at 92.90. That level could become a critical test for determining whether the rally from 60.97 is evolving into a larger impulsive breakout rather than merely a corrective rebound.
However, a break below 83.01 would argue that the current rally phase has temporarily run its course and that Silver may need a longer consolidation period above 70.83 before building a stronger base for the next advance.
