Silver is maintaining its upward trend for five consecutive sessions, trading around $115.10 per troy ounce during early European hours. It edges closer to the record high of $117.74 from January as there is a shift towards defensive assets.
President Trump’s comments about the USD’s slide fuel the interest in precious metals, including silver, due to expected benefits from a weaker dollar. Policy uncertainty in Washington, such as tariff threats and Federal Reserve challenges, supports this momentum.
Federal Reserve’s Rate Decision
The Federal Reserve is anticipated to keep rates at 3.50%–3.75% following consecutive cuts in 2025, with focus on upcoming policy signals. Citi expects silver’s strong performance to continue and has updated its three-month price forecast from $100.00 to $150.00.
A Chinese silver fund recently paused trading due to demand driving premium prices. Silver sees growing retail interest, prompting manufacturers to produce one-kilogram bars over jewellery.
Silver is a precious metal attracting investors for portfolio diversification and inflation hedging. Various factors affect silver prices, such as geopolitical instability, US Dollar strength, investment demand, and industrial use in electronics and solar energy.
Silver often moves in tandem with gold. The gold/silver ratio helps assess their relative valuation, guiding investment decisions based on assumptions of value disparity between the metals.
Trends and Trading Strategies
Given the current momentum, we see silver holding strong above the $115.00 mark, driven by significant safe-haven demand. The administration’s apparent comfort with a weaker U.S. dollar continues to fuel this rally. The market is pricing in ongoing policy uncertainty as a major catalyst for precious metals.
The U.S. Dollar Index (DXY) has confirmed this trend, falling from around 107 to its current 103 level over the last quarter of 2025. This 4% drop has made dollar-denominated assets like silver cheaper for foreign buyers. The Federal Reserve’s three interest rate cuts in 2025 have also been a key factor supporting non-yielding metals.
For derivative traders, this environment suggests maintaining a bullish outlook in the coming weeks. We believe purchasing call options with expirations in March and April 2026 offers a direct way to capitalize on the upward trend, especially with institutional targets now pointing toward $150.00. This provides exposure to further gains driven by the “Sell America” sentiment.
However, the rapid price increase has pushed implied volatility to its highest levels since the market turmoil of 2024. This makes outright call options expensive. We should therefore be mindful of the high premiums when establishing new long positions.
A more cost-effective approach would be to use bull call spreads. By simultaneously buying a lower-strike call and selling a higher-strike call, traders can reduce their initial cash outlay. This strategy allows for participation in the upside while capping both the maximum profit and the cost of entry.
We’ve also noted the gold/silver ratio has been compressing, falling from a peak of 85 in late 2025 to its current level near 70. This trend indicates silver is outperforming gold, a pattern that often attracts further speculative interest. This relative strength reinforces our positive stance on silver over other precious metals.
Underlying this speculative fervor is robust industrial demand, which provides a solid price floor. Global solar panel installations grew by an estimated 20% in 2025, and manufacturing data shows a clear pivot toward producing investment-grade silver bars. This indicates that both industrial and retail demand are strong pillars of support.
The main short-term risk is the Federal Reserve’s press conference this Wednesday. Any language hinting at a more hawkish stance than anticipated could cause a snap-back rally in the dollar and a sharp correction in silver. We advise using stop-losses to manage exposure through this key event.
