Silver price hits record highs on rising safe-haven demand

Silver prices recorded new all-time highs today after breaking above the $90/oz threshold. Demand for precious metals has increased recently for several reasons, most notably rising geopolitical tensions following recent developments related to the United States’ detention of former Venezuelan President Nicolás Maduro, ongoing protests in Iran alongside U.S. threats of potential military action, as well as indications from the Trump administration regarding the possible annexation of Greenland.

On another front, silver prices have also benefited from uncertainty surrounding the independence of the Federal Reserve, particularly after the opening of an investigation that could lead to criminal charges against the Federal Reserve Chair over renovation and refurbishment projects at the U.S. central bank’s buildings. Mr. Powell commented that the criminal investigation stemmed from the Federal Reserve’s failure to comply with President Trump’s desire for faster interest rate cuts.

Inflation vs Silver price

Yesterday’s Consumer Price Index report for December indicated stability in inflation levels, easing concerns that inflation could spiral out of control following the comprehensive tariffs that came into effect last year. It is worth noting that markets are pricing in a decision by the Federal Open Market Committee to keep interest rates unchanged at its January meeting, while awaiting further data before making a policy decision at the March meeting. Gold and silver prices recorded notable gains over the past year, as precious metals are widely viewed as an effective hedge against inflation.

Silver price – Technical Analysis

Silver price climbed to record highs today, reaching $91.53/oz before pulling back on profit-taking. A daily close above the high end of the current trading zone between $90.00 and $95.00 would signal strong bullish momentum and could drive price to extend gains toward $100.00/oz. Nevertheless, the resistance zone between $97.00 and $98.00 should be closely monitored.

Key levels in the opposite scenario

A daily close below the $90.00 level would signal a weakening of bullish momentum, potentially prompting more bullish traders to exit long positions. In this case, a corrective move could push prices toward the $83.73 level. It is also worth noting that the Relative Strength Index is currently moving in overbought territory above the 70 level, and a move below this threshold would indicate the potential for further downside in silver prices.
Silver Daily Price Chart

Silver – Daily Price Chart

Chart Source: ADSS Platform