Silver rally above $103 (Friday): Silver prices shocked global markets after crossing the $103 per ounce mark, driven mainly by strong speculative buying and fresh momentum trades. The precious metal has entered a high-volatility zone, attracting traders, investors, and bullion watchers worldwide.
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Silver Price Closed Above $103
This sharp rise comes at a time when global uncertainty, weak currency outlooks, and strong technical signals are pushing investors towards hard assets like silver.
Why Is Silver Rallying So Fast?
1. Heavy Speculative Buying
A surge in speculative positions across futures and options markets has pushed silver prices sharply higher. Traders are betting on continued upside as momentum builds.
2. Weak US Dollar Support
A softer US dollar has made silver cheaper for overseas buyers, increasing demand across international markets.
3. Safe-Haven Demand
With concerns around global growth, inflation risks, and geopolitical tensions, investors are moving funds into precious metals, especially silver due to its lower price compared to gold.
Silver (XAGUSD) gain in 2025 was the largest yearly growth in LSEG data going back to 1983.
The market’s performance in 2025 was underpinned by robust investment demand for all precious metals and an extended period of thin liquidity in the benchmark London silver market as worries about U.S. tariffs prompted massive inflows to U.S. stocks.
XAGUSD Technical Breakout Adds Fuel
Silver breaking above the psychological $101 level triggered fresh buying from technical traders. Once the resistance was cleared, stop-losses were hit, and prices moved rapidly toward $103 and beyond.
Market experts believe silver is now trading in an overheated but strong trend, where sharp moves in both directions are possible.
What Should Investors Watch Next?
Key Resistance Levels
- $108
- $112
- $118
- $122 (Need Patience)
Important Support Zones
- $100
- $96
- $91
- $80
- $70 (Rock Hard Support)
Traders are advised to stay cautious as high volatility can lead to sudden profit booking.
Silver Outlook: Boom or Bubble?
While the long-term fundamentals for silver remain strong due to industrial demand and green energy usage, short-term prices are heavily driven by speculative activity. Any negative news or stronger dollar movement can trigger a quick correction.
WHAT NOW?
Analysts expect outflows from U.S. stocks to speed up and boost liquidity in the traditional markets as Washington refrained from imposing any tariffs when announcing, opens new tab the results of its critical metals review in mid-January.
After peaking at 532 million ounces on October 3, COMEX inventories have fallen by 114 million ounces to 418 million ounces, their lowest level since March, as the metal worth about $11 billion left the inventories.
To reach pre-Trump-election levels, COMEX stocks would need to see further outflows of about 113 million ounces, equal to about 11% of total annual silver supply.
“Profit taking following the frenzied nature of the investor-driven rally since late November is likely sooner rather than later, particularly in view of ongoing physical market easing,”.
Experts suggest risk management is crucial at current levels.
FAQs
1. Why did silver cross $103 per ounce?
Silver surged due to heavy speculative buying, weak dollar support, and strong technical breakout above $100.
2. Is silver price likely to rise further?
Experts see further upside, but warn of sharp volatility and sudden corrections at higher levels.
3. Is this rally driven by fundamentals or speculation?
The current move is largely speculative, though long-term fundamentals remain supportive.
4. What are the next key targets for silver?
Major resistance levels are seen at $108— $112— $118 and $122. (Need Patience)
5. Should retail investors invest in silver now?
Retail investors should be cautious, use proper risk management, and avoid chasing prices at extreme levels.
Disclaimer
This article is intended for educational purposes only. The views and opinions expressed are those of individual analysts or brokerage firms and do not represent the views of GoldSilverReports.com. Investors are strongly advised to consult certified financial experts before making any investment or trading decisions.
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