{"id":40319,"date":"2026-01-28T12:58:59","date_gmt":"2026-01-28T04:58:59","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=40319"},"modified":"2026-01-28T12:58:59","modified_gmt":"2026-01-28T04:58:59","slug":"silver-extends-rally-as-dollar-weakness-deepens","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/silver-extends-rally-as-dollar-weakness-deepens\/","title":{"rendered":"Silver Extends Rally as Dollar Weakness Deepens"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1408\" height=\"768\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/Image_fx-2025-07-11T145638.997.png\" alt=\"\" class=\"wp-image-26243\" \/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Silver climbed to around <strong>$115 per ounce<\/strong>, up <strong>2.87%<\/strong>, moving toward fresh record highs.<\/li>\n\n\n\n<li>The US dollar sits at its <strong>weakest level in four years<\/strong>, reinforcing demand for precious metals.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>Silver rose to around <strong>$115 per ounce<\/strong> on Wednesday, extending a sharp rally as traders rotated into safe-haven metals following a steep decline in the US dollar.<\/p>\n\n\n\n<p>The move reflects growing conviction that currency weakness may persist, increasing the appeal of hard assets priced in dollars.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">President Donald Trump\u2019s relaxed tone about the dollar selloff is fueling speculation the US currency is at the start of a longer-term decline <a href=\"https:\/\/t.co\/WNFXASqhOl\">https:\/\/t.co\/WNFXASqhOl<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/2016344738882900216?ref_src=twsrc%5Etfw\">January 28, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The greenback has fallen to its <strong>weakest level in four years<\/strong>, a shift that has provided direct support to silver prices.<\/p>\n\n\n\n<p>A softer dollar <a href=\"https:\/\/t.co\/4QMEWxjxnz\" target=\"_blank\" rel=\"noopener\" title=\"\">lowers the cost of metals<\/a> for non-US buyers and often drives portfolio flows toward commodities as a hedge against currency erosion.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Policy Signals Reinforce Weaker Dollar Expectations<\/h2>\n\n\n\n<p>US President Donald Trump added to dollar pressure by stating he is unconcerned about the currency\u2019s recent decline.<\/p>\n\n\n\n<p>Markets interpreted the comments as confirmation that the administration is comfortable with a weaker greenback to support export competitiveness.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Trump says he&#39;s not worried about the dollar&#39;s decline despite four year lows. \ud83d\udcb5 <a href=\"https:\/\/t.co\/b6MR62N8C5\">pic.twitter.com\/b6MR62N8C5<\/a><\/p>&mdash; Yahoo Finance (@YahooFinance) <a href=\"https:\/\/twitter.com\/YahooFinance\/status\/2016277123724419209?ref_src=twsrc%5Etfw\">January 27, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>This stance has reinforced expectations that dollar weakness may be tolerated rather than resisted.<\/p>\n\n\n\n<p>As a result, precious metals have drawn renewed inflows, with silver benefiting alongside gold from broader hedging demand.<\/p>\n\n\n\n<p>Policy uncertainty in Washington has also played a role. Trump\u2019s <a href=\"https:\/\/t.co\/oVTwz9g3JQ\" target=\"_blank\" rel=\"noopener\" title=\"\">renewed tariff threats<\/a> against other nations and his attacks on the Federal Reserve\u2019s independence have unsettled markets, prompting traders to seek refuge in assets perceived as insulated from political risk.<\/p>\n\n\n\n<p>If policy rhetoric remains unpredictable, silver may continue to attract defensive flows despite elevated prices.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">China Demand Adds Fuel to the Rally<\/h2>\n\n\n\n<p>Strong demand from China has amplified the upside move in silver. A <strong>pure-play silver fund in China suspended trading<\/strong> after surging investor interest pushed its premium well above the value of its underlying assets.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">China\u2019s only pure-play silver fund halted trading on Wednesday, after a frenzied wave of investment drove its premium significantly above the value of its underlying assets <a href=\"https:\/\/t.co\/v5SCBqzFpL\">https:\/\/t.co\/v5SCBqzFpL<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/2016338490313543732?ref_src=twsrc%5Etfw\">January 28, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Such a step highlights the intensity of demand rather than a lack of supply.<\/p>\n\n\n\n<p>Retail participation has been particularly strong, with Chinese traders increasing exposure as prices continued to climb.<\/p>\n\n\n\n<p><a href=\"https:\/\/t.co\/0cfdY5gmbF\" target=\"_blank\" rel=\"noopener\" title=\"\">Manufacturers have also responded to the rally<\/a>, shifting production away from jewellery toward <strong>1 kilogram silver bars<\/strong>, a change that reflects both investment demand and expectations of sustained high prices.<\/p>\n\n\n\n<p>This combination of retail interest and supply adjustment has tightened near-term market conditions, adding momentum to the rally.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p><strong>XAGUSD (Silver)<\/strong> is trading at <strong>115.254<\/strong>, up <strong>+3.216 (+2.87%)<\/strong>, with strong upside momentum in the latest session.<\/p>\n\n\n\n<p>After bottoming out near <strong>113.408<\/strong>, silver saw a sharp breakout, sustained by consistent green candles and rising volume.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/image-29-1024x474.jpg\" alt=\"\" class=\"wp-image-40320\" \/><\/figure>\n\n\n\n<p>It touched a session high of <strong>115.580<\/strong> before modest pullback, but price remains firmly above short-term moving averages (MA5 to MA30 all clustered between <strong>115.02\u2013115.27<\/strong>), which are stacked in bullish alignment.<\/p>\n\n\n\n<p>The close above all key MAs with volume support suggests bullish continuation. If momentum holds, silver could retest <strong>115.58<\/strong> or push toward the next psychological level near <strong>116.00<\/strong>. A drop below <strong>114.90<\/strong> would be the first sign of cooling.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Short-Term Outlook<\/h2>\n\n\n\n<p>Silver\u2019s advance reflects a convergence of supportive factors, including a sharply weaker dollar, policy uncertainty, and strong demand from Asia.<\/p>\n\n\n\n<p>These drivers have pushed prices close to record territory, keeping bullish sentiment intact.<\/p>\n\n\n\n<p>In the near term, direction is likely to hinge on the dollar\u2019s trajectory and further signals from US policymakers.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p><strong>Learn more about trading <a href=\"https:\/\/www.vtmarkets.com\/precious-metals\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Precious Metals<\/a> on VT Markets <a href=\"https:\/\/www.vtmarkets.com\/Insights\/\" target=\"_blank\" rel=\"noopener\" title=\"\">here<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Silver trades near $115 as a weaker dollar and policy uncertainty drive strong safe-haven demand.<\/p>\n","protected":false},"author":64,"featured_media":26243,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[13,14],"class_list":["post-40319","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-precious-metals","tag-silver"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/40319","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=40319"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/40319\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/26243"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=40319"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=40319"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=40319"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}