Silver (XAG\/USD) rose 2.13% to about $86.50 in Monday\u2019s European session, supported by uncertainty over US trade policy. This followed a US Supreme Court ruling against President Donald Trump\u2019s tariff approach.<\/p>\n
The court said Trump overstepped his authority by using the International Emergency Economic Powers Act (IEEPA) to support tariffs. It blocked so-called reciprocal tariffs and called them \u201cillegal\u201d.<\/p>\n
After the ruling, the US Dollar weakened. The US Dollar Index (DXY) was down 0.35% at about 97.45, which can support dollar-priced metals.<\/p>\n
Geopolitical risk also added support as US-Iran tensions continued over Tehran\u2019s nuclear programme. The Wall Street Journal reported that Trump is weighing a limited military strike on Iran to push for a nuclear deal.<\/p>\n
On the charts, silver held above the 20-day EMA at $82.78 and moved towards the February 4 high of $92.21. Support was noted at the $70.00 level, while the 14-day RSI stayed in the 40.00\u201360.00 range, suggesting a sideways broader trend.<\/p>\n
Looking back at the market in 2025, we saw silver surge to near $86 on the back of extreme trade policy uncertainty and a weakening US Dollar. Today, the environment is fundamentally different, with silver trading at a more subdued $23.80 as of late February 2026. The unique geopolitical drivers of last year have faded, requiring a new approach to the market.<\/p>\n
The sharp decline in the US Dollar Index seen in 2025 is no longer a tailwind for precious metals. The DXY is currently holding firm around the 104.5 level, supported by a Federal Reserve committed to maintaining steady interest rates. This monetary policy stance creates a significant headwind for a non-yielding asset like silver, unlike the conditions that propelled it higher last year.<\/p>\n
While the acute US-Iran tensions provided a strong safe-haven bid for silver in 2025, today’s geopolitical landscape is less of a direct catalyst. Market focus has shifted, and with diplomatic channels more active in current global hotspots, the fear premium has largely evaporated from the price. This means we must look for other factors to justify long positions in the metal.<\/p>\n
The primary support for silver in 2026 comes from robust industrial demand, a factor that was secondary last year. The Silver Institute recently forecast that consumption from the photovoltaic sector will grow by another 15% this year, on top of record demand for solar panel and electric vehicle manufacturing in 2025. This provides a strong fundamental floor for the price, independent of safe-haven flows.<\/p>\n
For derivative traders, this suggests a range-bound market caught between strong industrial demand and headwinds from a strong dollar and firm interest rates. Strategies like selling covered calls against physical holdings or long futures could be effective for generating income between the key support at $22.00 and resistance at $25.50. Buying straddles ahead of major industrial production data releases from China could also be a viable way to play any potential breakout from this range.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Silver jumps 2.13% to $86.50 as tariff ruling weakens dollar, geopolitical tensions support prices.<\/p>\n","protected":false},"author":62,"featured_media":16973,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-42558","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/42558","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=42558"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/42558\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16973"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=42558"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=42558"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=42558"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}