Insights 
VT 
Key Points
- Silver climbed to around $115 per ounce, up 2.87%, moving toward fresh record highs.
- The US dollar sits at its weakest level in four years, reinforcing demand for precious metals.
Silver rose to around $115 per ounce on Wednesday, extending a sharp rally as traders rotated into safe-haven metals following a steep decline in the US dollar.
The move reflects growing conviction that currency weakness may persist, increasing the appeal of hard assets priced in dollars.
The greenback has fallen to its weakest level in four years, a shift that has provided direct support to silver prices.
A softer dollar lowers the cost of metals for non-US buyers and often drives portfolio flows toward commodities as a hedge against currency erosion.
A cautious forecast suggests silver may remain supported as long as the dollar stays under pressure, though sharp gains increase the risk of near-term consolidation.
Policy Signals Reinforce Weaker Dollar Expectations
US President Donald Trump added to dollar pressure by stating he is unconcerned about the currency’s recent decline.
Markets interpreted the comments as confirmation that the administration is comfortable with a weaker greenback to support export competitiveness.
This stance has reinforced expectations that dollar weakness may be tolerated rather than resisted.
As a result, precious metals have drawn renewed inflows, with silver benefiting alongside gold from broader hedging demand.
Policy uncertainty in Washington has also played a role. Trump’s renewed tariff threats against other nations and his attacks on the Federal Reserve’s independence have unsettled markets, prompting traders to seek refuge in assets perceived as insulated from political risk.
If policy rhetoric remains unpredictable, silver may continue to attract defensive flows despite elevated prices.
China Demand Adds Fuel to the Rally
Strong demand from China has amplified the upside move in silver. A pure-play silver fund in China suspended trading after surging investor interest pushed its premium well above the value of its underlying assets.
Such a step highlights the intensity of demand rather than a lack of supply.
Retail participation has been particularly strong, with Chinese traders increasing exposure as prices continued to climb.
Manufacturers have also responded to the rally, shifting production away from jewellery toward 1 kilogram silver bars, a change that reflects both investment demand and expectations of sustained high prices.
This combination of retail interest and supply adjustment has tightened near-term market conditions, adding momentum to the rally.
Technical Analysis
XAGUSD (Silver) is trading at 115.254, up +3.216 (+2.87%), with strong upside momentum in the latest session.
After bottoming out near 113.408, silver saw a sharp breakout, sustained by consistent green candles and rising volume.
It touched a session high of 115.580 before modest pullback, but price remains firmly above short-term moving averages (MA5 to MA30 all clustered between 115.02–115.27), which are stacked in bullish alignment.
The close above all key MAs with volume support suggests bullish continuation. If momentum holds, silver could retest 115.58 or push toward the next psychological level near 116.00. A drop below 114.90 would be the first sign of cooling.
Short-Term Outlook
Silver’s advance reflects a convergence of supportive factors, including a sharply weaker dollar, policy uncertainty, and strong demand from Asia.
These drivers have pushed prices close to record territory, keeping bullish sentiment intact.
In the near term, direction is likely to hinge on the dollar’s trajectory and further signals from US policymakers.
Continued dollar softness could sustain the rally, while any stabilisation in the currency may prompt a period of sideways trading as the market absorbs recent gains.
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