The latest analysis for$XAG (Silver) indicates a strong bullish trend, with the price recently reaching new record highs.

 

Here's a summary of the current XAG analysis:

 

Price Action: Silver has extended its rally, breaking above $90 per ounce and hitting a new all-time high of $91.57. This surge follows a period of significant gains, with silver prices rising over 41% in the past month and nearly 195% compared to the same time last year.

 

Momentum and Technical Indicators: While the broader uptrend remains intact, some technical indicators suggest waning momentum. The Relative Strength Index (RSI) shows divergence, hinting that buyers might be losing some steam, and the price action appears overextended. However, the path of least resistance is still upwards. Other technical analyses show a "Strong Buy" signal based on moving averages and other indicators. The 14-day RSI is currently at 74.77, indicating overbought conditions, but also strengthening bullish pressure.

 

Key Drivers:

 

Geopolitical Tensions: Rising geopolitical risk premiums, such as those stemming from geopolitical events, are increasing demand for safe-haven assets like silver.

 

Inflation and Interest Rates: A soft inflation report in the United States and expectations of continued interest rate cuts from the US Federal Reserve into 2026 are underpinning prices.

 

Industrial Demand: Robust investment flows and strong industrial demand, particularly driven by the global transition to clean energy technologies and artificial intelligence, are significant factors supporting the bullish outlook.

 

Supply Deficit: Silver continues to be in a multi-year deficit, exacerbated by tight liquidity in the London market.

 

Resistance and Support Levels:

 

Immediate resistance levels are identified at $87.00, $88.00, and the all-time high of $89.11 (or potentially higher at $90.90, $94.60–95.81, and $98.74–99.46 for accelerated uptrend).

 

Key support levels are at $86.23 and $85.50. A breach below $85.50 could expose the $80.00 mark.

 

Outlook: Analysts are targeting $100-$125 for silver this year, driven by the supply deficit and real demand. Some projections estimate silver to trade around $88.63 in 12 months and potentially reach an average of $123.37 by December 2026. Long-term projections suggest an average price of approximately $145.39 by the end of 2036.

 

It's important to remember that silver prices can be highly volatile due to speculation and supply/demand dynamics, making it a higher-risk investment option with potential for greater rewar