Silver (XAG/USD) traded near $90.50 per troy ounce in early European trading on Wednesday after recovering losses from the previous session. The 14-day RSI was around 56, above the midline and not near overbought levels.
Price action remained above the nine-day and 50-day EMAs, pointing to a recovery after a sharp sell-off. The nine-day EMA was rising while the 50-day EMA stayed flatter.
Technical Levels And Momentum
Resistance was noted near the psychological $100.00 level. Another reference point was the record high of $121.66 set on 29 January.
Support levels included the nine-day EMA near $84.43 and the 50-day EMA at $79.94. A move below both could open the way to the two-month low of $64.08 recorded on 6 February.
Silver is traded as a precious metal and can be bought physically or via products such as ETFs that track its price. Prices can be affected by geopolitical risks, recession fears, interest rates, the US Dollar, investment demand, mining supply and recycling.
Industrial use in electronics and solar can influence demand, alongside economic conditions in the US, China and India. Silver often tracks Gold, and the Gold/Silver ratio is used to compare relative value.
Strategy And Risk Management
The current silver price action around $90.50 presents a cautiously bullish outlook for us. With the price holding firmly above its key moving averages, the path of least resistance appears to be toward the psychological $100.00 mark. Traders should consider strategies that benefit from this upward momentum, such as buying call options with strike prices approaching that level.
This technical strength is supported by recent fundamental shifts. Minutes from the Federal Reserve’s early February 2026 meeting suggested a more dovish policy ahead, which has helped push the US Dollar Index below the 102 level. A weaker dollar and the prospect of lower interest rates are historically favorable conditions for silver prices.
We are also seeing strong industrial demand providing a solid floor for prices. Global data for the final quarter of 2025 confirmed a 15% year-over-year increase in solar panel installations, a sector heavily reliant on silver. This robust industrial consumption is expected to continue throughout 2026, absorbing a significant portion of the mining supply.
It is worth noting how the relative valuation has changed from last year. We saw the Gold/Silver ratio hovering near 85:1 for much of 2025, but it has since tightened to around 75:1, reflecting silver’s recent strength against gold. This shift suggests that momentum is currently favoring silver over its more expensive counterpart.
Despite the positive signals, risk management is critical. A break below the initial support at the nine-day EMA near $84.43 would be the first warning sign of a weakening trend. Derivative traders could use this level as a trigger to take profits on bullish positions or to establish protective puts.
A more decisive bearish signal would be a close below the 50-day EMA around $79.94. Such a move would undermine the current recovery structure and bring the February 6 low of $64.08 back into focus. This scenario would warrant a more aggressive bearish or short-hedging stance.
