Silver Price Forecast: $100 Moonshot? Why XAG/USD is Smashing Resistance Amid “Tariff Chaos”
Silver is the "hot" metal at the moment - and for good reason. While gold gets all the headlines, silver (XAG/USD) is the one that's...
Quick overview
- Silver is currently experiencing significant gains, recently pulling back to the $86.50-$86.90 range after a massive 6% surge.
- The surge is attributed to geopolitical tensions and inflation risks, prompting investors to seek safe-haven assets like silver.
- Technical analysis indicates a bullish trend for silver, with potential price targets of $92.30 and beyond as institutional buying increases.
- Silver's industrial demand is rising due to its critical role in technology, renewable energy, and electric vehicles, alongside ongoing supply deficits.
Silver is the “hot” metal at the moment – and for good reason. While gold gets all the headlines, silver (XAG/USD) is the one that’s delivering the explosive percentage gains that traders love. It pulled back a little today – about 1.5% – to the $86.50-$86.90 range, but if you look at the bigger picture, the structural breakout above $85 has opened the floodgates for a run toward $100 – or even beyond.
1. Trump and the Tariff Firestorm: Why Silver’s Coming Back
The reason for the current surge is pretty clear: the return of “Tariff Chaos”. After the US Supreme Court blocked the bigger trade plans, President Trump decided to take a different tack – a 15% global tariff. That move has got markets thinking about retaliatory measures and the impact they’ll have on global supply chains. We’re also seeing inflation risks rising, which can push investors towards safe-haven assets like silver – and Washington-Tehran tensions aren’t helping. With all this going on, silver has reclaimed its status as a go-to hedge.
Yesterday, silver really took off – a massive 6% intraday surge that briefly touched the $88 level – a level that’s psychologically hard to breach.
Silver (XAG/USD) Technical Analysis: $92.30 and $103.90 – Where Next?
Looking at the technicals, an analyst might say that the structure is “very” bullish. The break above $85.10 wasn’t just a price move, it was a switch in momentum that confirmed an inverse head-and-shoulders pattern.
The Movers: Silver’s 50-period MA is currently at $81.38 and its 200-period MA is at $82.73 – and it’s trading above both of those. That’s a pretty clear signal that the short-to-medium term trend is looking very bullish.
More of the Same: We’ve also got a line of higher lows – starting with the $67.25 floor back in early February. That’s a sign of some big institutional players buying into silver.
Next Stops: So, once the current profit-taking is done, the next level to breach is likely to be $92.31 – then there are major supply zones to deal with: $98.25 and $103.90.
The Double-Whammy for Industry
Gold is a monetary asset, but silver is really an industrial powerhouse. In 2026, we’re expecting a sixth consecutive year of supply deficits – and they’re going to be huge. The Silver Institute and Metals Focus are forecasting deficits ranging from 67 to 120 million ounces – and the reserves are getting depleted because mine supply is just not keeping up.
How Silver’s in Demand
It’s not just about jewelry or tableware anymore – it’s about the essential role silver plays in:
The New Tech: Silver’s a critical component in high-speed computing. It’s the backbone of modern AI tech.
Solar Power: It’s also a key material in photovoltaics – with massive demand from the transition to renewable energy.
Elec and Transport: And let’s not forget its use in electric vehicles and power grids – as we electrify transport and infrastructure.
The Final Verdict and Trade Idea
For new traders, silver can be a bit intimidating – and that’s because of its volatility. Don’t let a 1-2% dip get you out of the market if you’re long-term focused. For pros though, keep an eye on the gold/silver ratio – it’s gone down to 59:1, which is a clear signal that silver is starting to catch up with gold’s earlier gains.
Trade Idea:
Get In: Consider buying above $88.00.
Target: Aim for $92.30.
Exit Strategy: Set your stop-loss below $85.00.
In Summary: As long as silver stays above $82.70, the 2026 trend is still looking very bullish. Keep an eye out for those “tariff chaos” headlines – we’re expecting them to send the price even higher.
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