Silver prices dropped over 5% due to positive US economic data, which reduced demand for safe-haven assets. XAG\/USD currently trades around $80.40, reflecting bearish momentum with pressure increasing below $80.00, aiming for the 50-day SMA at $75.62.<\/p>\n
The grey metal’s value fell sharply for the second day, impacted by the strong risk-on sentiment. Silver prices are likely to stabilise between $80 and $85, needing a break above $85.87 to approach $90.00.<\/p>\n
RSI metric indicates a bearish outlook, signalling importance of breaking the $80.00 level. If buyers reclaim $90.00, resistance targets could shift to $95.00 and potentially $100.00, as observed in January.<\/p>\n
Silver, although less in demand than Gold, is valued for its historic role as a value store and its utilisation in investment diversification. Industrial use, especially in electronics and solar energy, can influence silver prices due to its high electric conductivity.<\/p>\n
Silver prices often replicate Gold’s trends as a safe-haven asset. Market and instrument profiles are informational, and due diligence is necessary when making investment choices, acknowledging potential risks and emotional impacts associated with investing in open markets.<\/p>\n
Looking back at the sharp sell-off in January 2026, the risk-on mood has only intensified. That slump was triggered by strong economic data, and the latest January jobs report released last Friday confirmed this trend, showing a robust 305,000 new jobs added. This has cemented the market\u2019s view that the Federal Reserve will remain on hold, pressuring safe-haven assets like silver.<\/p>\n
The break below the key $80.00 psychological level has confirmed our bearish outlook. We are now trading near $78.50, with the 50-day moving average around $75.62 as the next logical target for sellers. The Relative Strength Index (RSI) remains below 50, indicating that downside momentum is still in control for now.<\/p>\n
This strong dollar environment is a major headwind for silver and other precious metals. The US Dollar Index (DXY) has climbed to a three-month high of 105.20, making dollar-denominated assets like silver more expensive for foreign buyers. Until we see a significant weakening in economic data, the path of least resistance for silver appears to be lower.<\/p>\n
On the industrial side, recent reports show a slight slowdown in global solar panel manufacturing for the fourth quarter of 2025. This dip, while minor, removes a key pillar of support for physical demand in the near term. We expect this factor to continue weighing on sentiment over the coming weeks.<\/p>\n
For derivative traders, this environment suggests buying put options with strikes near $75.00 is a viable strategy to position for further declines. Alternatively, selling out-of-the-money call options with strikes above the December 2025 peak of $85.87 could be an effective way to collect premium. We see limited potential for a significant rally in the immediate future.<\/p>\n
We have seen this pattern before, particularly during the 2013-2015 period when strong US economic performance and Fed tightening expectations led to a prolonged slump in precious metals. That historical precedent supports our view that as long as the economic outlook remains bright, silver will likely struggle to find a bid. This is not the time to be fighting the dominant trend.<\/p>\n","protected":false},"excerpt":{"rendered":"
Silver drops over 5% on strong US data; bearish trend continues below $80 amid risk-on sentiment.<\/p>\n","protected":false},"author":62,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-40751","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/40751","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\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=40751"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/40751\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=40751"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=40751"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=40751"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}