Silver Price Update: XAG/USD Stabilizes at $82 as Market Digests “Warsh Shock” and Supply Deficit
Silver (XAG/USD) is trading between $81.30 and $81.60 per ounce early Tuesday, slipping 2% as traders take profits after a volatile...
Quick overview
- Silver (XAG/USD) is currently trading between $81.30 and $81.60 per ounce, experiencing a 2% decline as traders take profits after a volatile start to the month.
- Despite recent price fluctuations, silver's long-term outlook remains strong due to ongoing supply shortages and increasing industrial demand, particularly from solar energy and electric vehicles.
- Technical analysis indicates that silver is forming a new support level, with resistance at $83.10 and strong support established at $79.00.
- Market sentiment is neutral to bullish, with traders looking to buy the dip around $77–$78, anticipating a potential rebound towards $93 if the US Dollar weakens.
Silver (XAG/USD) is trading between $81.30 and $81.60 per ounce early Tuesday, slipping 2% as traders take profits after a volatile start to the month.
After surging to $121.88 in January and then dropping 30%, silver is now going through a “speculative washout” as prices settle from hype to a more stable, fundamentals-driven level.
Profit-Taking Halts Rebound Near $83
Today’s price movement is a pause after Monday’s 6% jump. The calmer mood is mostly due to a stronger US Dollar and rising stock markets, with the FTSE 100 reaching new highs.
Investors are adjusting their portfolios after Kevin Warsh was nominated as Federal Reserve Chair. Warsh is known for favoring a strong dollar, which has boosted confidence in the USD and reduced the immediate need for silver as a currency hedge.
Still, with gold staying above $5,000, silver’s importance in industry helps support its value.
Structural Deficit: The Engine Behind the 2026 Bull Case
Even with recent price swings, silver’s long-term outlook is strong. The market is now in its sixth straight year of supply shortages.
- Supply Rigidities: Global mine production is nearly flat, growing only about 1% per year. Since more than 70% of silver comes as a byproduct from mining other metals, supply can’t quickly increase even if prices rise sharply.
- The Industrial Triple Threat, Solar PV: Silver is essential for photovoltaic cells, and demand is expected to hit record highs by 2026 as solar capacity grows worldwide.
- EV Revolution: Electric vehicles use much more silver than traditional cars because of their advanced electronics and charging systems.
- AI Infrastructure: The growth of data centers and high-performance chips for AI has created a new, steady source of demand for silver.
Silver (XAG/USD) Technical Analysis: Navigating the $82 Resistance Zone
Technically, silver is now trading in a tighter range. The sharp uptrend from January has ended, but a new support level is starting to form.
Resistance is at $83.10 (23.6% Fibonacci retracement). The 4-hour trend would turn bullish if silver can stay above the 50-period EMA at $85.80.
Whereas, strong horizontal support is established at $79.00, with a deeper structural floor near the $71.20 mark.
The Relative Strength Index (RSI) is close to 50, showing a neutral balance between buyers and sellers after bouncing back from oversold levels below 30 earlier this month.
| Level Type | Price Target (USD) | Significance |
| Major Resistance | $121.67 | January 2026 All-Time High |
| Pivot Point | $85.50 | 50% Retracement / Trend Confirmation |
| Immediate Support | $79.38 | Recent Swing Low / Psychological Level |
| Structural Floor | $64.10 | Early February Correction Bottom |
2026 Price Forecast: $100 Still on the Horizon?
Wall Street remains divided but largely optimistic for the remainder of the year. While BMO Capital Markets has tempered expectations to an average of $56–$60, other institutions like Citigroup and Bank of America see potential for silver to reclaim the $100–$120 range, citing the unprecedented physical scarcity.
“The rapid stabilization around $75–$82 indicates that silver has completed its backtest from speculative frenzy to its industrial value bottom,” notes Jiayi Li, a global market researcher.
Trade sentiment is neutral to bullish. Traders want to “buy the dip” around $77–$78, aiming for a move back to $93 if the US Dollar weakens.
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