Silver (XAG/USD) has captured market attention in January 2026, rallying from $76 at the end of 2025 to a peak of $118—a 55% surge marking its strongest monthly gain since the 1980 Hunt brothers’ speculative episode.
While historical comparisons highlight extreme volatility, current drivers suggest a fundamentally supported rally rather than pure speculation.
The recent breakout above the $100 resistance level has accelerated bullish momentum, prompting analysts to question whether Silver can maintain its trajectory toward the next target of $150 per ounce.
Strong Bullish Momentum Supported by Industrial Demand
Silver’s rally has been underpinned by structural demand factors, with industrial use now accounting for roughly 60% of total consumption. Key sectors driving demand include solar photovoltaics, electric vehicle (EV) batteries, and AI data centers, reflecting Silver’s growing role in green energy and technology applications.
Silver could see significant gains, potentially reaching $156 if gold holds $5,000, or $350 in a supercycle scenario, as the gold/silver ratio nears a 40-year low. Source: Anna Yaksheva via X
Anna Yaksheva noted that the gold/silver ratio has declined 55% to around 47, approaching a 40-year low of 35. This suggests that Silver remains relatively undervalued compared with gold, with ratio-based projections estimating Silver could reach $156 per ounce if gold stabilizes at $5,000, or even $350 in a supercycle scenario with gold at $7,000.
Technical Analysis Points to Further Gains
Silver recently broke the round resistance level at $100, triggering the short-term impulse wave 5 within the larger wave C pattern from October. Following this breakout, analysts identify the next key resistance zone near $117.85, which aligns with previous highs and chart formations such as the daily Shooting Star.
Silver remains in a short-term bullish trend, holding higher lows and key support zones, with potential continuation toward premium liquidity after mitigating current consolidation areas. Source: X_SMCTRADES0 on TradingView
Market observations highlight that Silver is maintaining a bullish structure, respecting higher lows while trending above intraday support lines. Technical concepts, including Break of Structure (BOS) and Fair Value Gap (FVG), suggest that short-term pullbacks may act as consolidation rather than a reversal. According to trading guidance shared on TradingView, the price is likely to mitigate supply zones before advancing toward premium liquidity targets.
Macro and Policy Catalysts Support Silver Rally
Precious metals, including Silver, have benefited from geopolitical uncertainty and US monetary policy dynamics. Recent remarks from President Donald Trump downplaying concerns about the US dollar’s weakness have reinforced expectations that a lower greenback may support exports and precious metal demand.
Silver has surged roughly 55–60% in January 2026, reaching $118, driven by robust industrial demand, supply constraints, and ETF inflows, unlike the speculative-driven spike of 1980. Source: Sagar via X
The Federal Reserve is widely expected to maintain rates at 3.50%–3.75%, following three cuts in 2025. Analysts are monitoring the Fed’s post-meeting statements for guidance on rate policy, as interest rates continue to influence the silver price amid inflation and economic uncertainty.
In addition, retail and institutional investors have intensified physical Silver demand. In China, surging interest forced a pure-play Silver fund to halt trading as premiums soared above underlying asset values. Manufacturers have shifted production from jewelry toward one-kilogram Silver bars to meet growing consumption needs.
Short-Term Outlook and Price Forecast
As of mid-January, Silver was trading around $115 per troy ounce, approaching its record high of $117.74. Analysts suggest that support levels near $100–$105 may hold during minor pullbacks, providing a base for continuation toward $150, consistent with Citi’s upgraded three-month forecast.
Silver remains under short-term pressure, with potential support at $110.40 and $107.46, while a break above $112.91 is needed to reignite bullish momentum toward $117.19 and $119.83. Source: SroshMayi on TradingView
Key technical indicators also show strong bullish momentum, with the monthly RSI exceeding 90. While reminiscent of 1980’s overbought levels, the current rally is driven primarily by industrial demand and constrained supply, rather than speculative excess.
Looking forward, the combination of robust industrial demand, ETF inflows, supply deficits, and macroeconomic uncertainty positions Silver for potential further gains. Traders and investors will be closely monitoring silver price movement today, with technical analysis suggesting that sustaining momentum above $115–$118 is crucial to reaching the $150 price target.
Final Thoughts
Silver’s breakout above $100 has reignited bullish sentiment, supported by structural demand, macro catalysts, and technical momentum. While historical comparisons to the 1980 Hunt bubble remind investors of Silver’s volatility, current market dynamics suggest a fundamentally backed rally. With short-term consolidation near $115–$118, the precious metal appears poised to test the $150 target, contingent on continued industrial demand, ETF activity, and supportive macro conditions.