Silver stayed in a strong long-term uptrend and carried that momentum into the final quarter of 2025. Prices, which had already surged in the first half of the year, climbed to a new record of $83.64 by year’s end. Even after pulling back, finished the year at $72.61, marking a sharp annual gain of 147% and underlining the strength of the rally.
After hitting the peak, some investors locked in profits. This led to a period of consolidation with wide price swings, which often follows a steep rise. In the first week of the new year, silver moving back toward the $75 level suggests rising demand for commodities. It also signals a renewed role for silver as a safe haven as geopolitical risks increase.
Main Factors Driving Silver’s Price
As 2026 begins, expectations around the are the main driver of silver’s fundamentals. After the sharp rally in 2025, markets started the new year focused on when the first rate cut might happen, even as geopolitical risks remain high.
Investors still expect the possibility of two rate cuts in 2026. However, recent signals from the Fed suggest that any move may come later rather than sooner. Philadelphia Fed President Anna Paulson said that further cuts may take time. This has strengthened the view that even if inflation eases during 2026, policy changes are likely to be slower and more limited, possibly toward the later part of the year.
In this environment, silver’s short-term direction is likely to remain volatile and closely tied to incoming data. Key releases, especially , could either strengthen expectations for a March rate cut or push that idea further out.
As a result, silver prices in the near term are highly sensitive to macroeconomic data, with each major release having the potential to shift market expectations quickly.
Geopolitical Risks and Tight Supply Support Silver
The second major theme in the commodity market is rising geopolitical risk. These risks reduce investor appetite for riskier assets and increase demand for safe havens. Ongoing tensions involving Iran, the lack of a lasting agreement in the Russia-Ukraine conflict, and continued uncertainty around Gaza all support steady demand for precious metals.
Alongside this, renewed tensions linked to the US move to detain Venezuela’s President Maduro added to market anxiety. This triggered stronger safe-haven buying, and silver gained sharply from that demand.
In such periods, silver prices move through two main channels. First, silver tends to move more closely with gold as its safe haven role becomes stronger. Second, as investors turn cautious, capital flows into assets that are seen as safer within portfolios, which supports silver prices.
In silver, price support comes from both macro factors and market-specific conditions. According to the Silver Institute, the silver market recorded its fifth straight supply deficit in 2025. The group also pointed to unusual conditions such as tight liquidity, record-high leasing rates, and concerns around US tariffs. These factors continue to affect physical supply flows.
This means that even as prices rise, the market remains tight and supply stays limited, especially in the physical market. There is little sign of easing pressure on availability.
Silver also differs from gold because of its heavy use in industry. Strong growth in solar panel installations continues to support industrial demand. At the same time, higher prices encourage manufacturers to reduce the amount of silver used per unit by improving efficiency. As a result, demand remains solid, while rising prices push the industry to adapt. Over the medium term, this creates a balance where demand stays strong, but efficiency increases as prices move higher.
Other Factors Fueling the Silver Rally
Signs of a global economic slowdown and growing expectations of central bank easing have pushed investors toward real assets. Silver benefits from this shift because it sits at the intersection of precious metals and industrial materials. Its role as a critical mineral and its heavy use in industry tie it closely to economic growth and the energy transition theme. For this reason, stronger inflows into gold and silver ETFs toward the end of the year came as no surprise.
Overall, silver’s price trend remains supportive when several forces align. These include expectations of interest rate cuts, ongoing geopolitical risks, tight supply conditions, and steady industrial demand. When these factors move together, the upward trend can continue. When one or more weaken, silver prices can become more volatile in the short term.
Technical Outlook for Silver
From a technical point of view, the daily chart shows that the main uptrend in silver, which picked up speed in the first half of 2025, stayed in place through the final quarter of the year. After the latest peak, profit-taking became stronger, and the market began to move into a consolidation phase with higher volatility.
The roughly 8% pullback in the last week of December does signal a trend break. It reflects a pause as the market looks for balance after a very fast rise. The move back toward the $75 level in the first week of 2026 shows that buyers are still active during this phase.
Daily indicators continue to support a bullish bias. Short-term exponential moving averages, the 8 EMA and 21 EMA, remain below the price and are trending higher. This suggests that during pullbacks, buyers continue to step in and defend the broader trend. At the same time, the Stochastic RSI moved into oversold territory during the recent volatility. This points to easing selling pressure and leaves room for short-term rebound buying.
Overall, the picture suggests that the uptrend can continue, though the pace is likely to be more careful and controlled compared with the earlier surge.
Critical Levels for the Silver Price
Looking at the daily chart, silver found strong support in the $70 to $71 range during the volatile final days of 2025. This area lines up with the Fib 0.382 retracement level from the October to December rally, which adds to its importance. Strong buying from this zone pushed prices back above the Fib 0.236 level, near $75.
If silver manages to hold daily closes above this area, the move higher may develop into a more stable uptrend rather than a short-lived bounce. As long as prices stay above the parabolic uptrend line, silver could continue a steady climb toward the previous high around $83. A decisive break above $83 would open the door to higher extension targets, with $91 and even $103 coming into focus.
On the downside, the $69.6 to $71.2 range remains the first key support. A move below this zone would signal a deeper and more serious correction rather than a normal pullback. In that case, lower levels such as $65.30 at the Fib 0.50 level and $61 at the Fib 0.618 level would come into view. A decline in these areas would raise broader concerns about the strength of the overall bullish trend.
Overall, the broader picture for silver still points to an uptrend. After reaching the peak at $83.64, the price has shifted into a slower and more volatile phase rather than continuing at the same fast pace.
On the fundamental side, expectations around the Fed and ongoing geopolitical risks drive short-term price swings. At the same time, tight supply and steady industrial demand help build a strong base for prices over the medium term.
From a technical view, the $75 to $76 area is the key zone to watch for short-term trend continuation. On the downside, the $69.60 to $71.2 range stands out as the main support band. This area will test whether the broader uptrend remains healthy.
****
Below are the key ways an InvestingPro subscription can enhance your stock market investing performance:
- ProPicks AI: AI-managed stock picks every month, with several picks that have already taken off in November and in the long term.
- Warren AI: Investing.com’s AI tool provides real-time market insights, advanced chart analysis, and personalized trading data to help traders make quick, data-driven decisions.
- Fair Value: This feature aggregates 17 institutional-grade valuation models to cut through the noise and show you which stocks are overhyped, undervalued, or fairly priced.
-
1,200+ Financial Metrics at Your Fingertips: From debt ratios and profitability to analyst earnings revisions, you’ll have everything professional investors use to analyze stocks in one clean dashboard.
-
Institutional-Grade News & Market Insights: Stay ahead of market moves with exclusive headlines and data-driven analysis.
-
A Distraction-Free Research Experience: No pop-ups. No clutter. No ads. Just streamlined tools built for smart decision-making.
Not a Pro member yet?
Already an InvestingPro user? Then jump straight to the list of picks here.
Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belong to the investor. We also do not provide any investment advisory services.