Silver Extends Record-Breaking Rally as XAG/USD Climbs Above $94

Key Moments

Fresh Record High Within an Ascending Channel

Silver price (XAG/USD) advanced after two consecutive sessions of declines, setting a fresh record peak at $94.15 earlier on Monday. During early European trading hours, the metal was hovering around $93.70 per troy ounce. On the daily chart, Silver continues to trade within an ascending channel pattern, underscoring a persistent bullish bias in the broader trend.

#Silver price (#XAGUSD) gains ground after two days of losses, reached fresh record high of $94.15 during earlier hours. Currently, the Silver price is trading around $$93.70 per troy ounce during early European hours on… pic.twitter.com/vv0wjKGcse

— Erina (@XauusdErina) January 19, 2026

Momentum Signals: Overbought but Still Strong

The 14-day Relative Strength Index (RSI) was at 72.65, placing the market in overbought territory. This elevated reading highlights stretched upside momentum that could transition into a consolidation phase. With the RSI holding above the 70 threshold, buying pressure remains robust, while simultaneously suggesting that scope for additional immediate gains may be constrained without a pause or correction.

Moving Averages Confirm an Entrenched Uptrend

The nine-day Exponential Moving Average (EMA) is trending higher and is positioned well above the 50-day EMA, reinforcing the strength of the prevailing uptrend. The notable gap between these moving averages supports the constructive outlook for Silver. Price continues to trade above both short- and medium-term averages, with their upward slopes indicating that bullish participants retain control of the market.

Key Technical Levels: Upside Targets and Downside Supports

On the upside, technical projections indicate that Silver could challenge the upper band of the ascending channel near $96.80. A move toward this region would bring the psychologically important $97.00 area into focus as the next potential resistance zone.

On the downside, initial support is seen at the nine-day EMA at $87.05. A decisive break below this level would likely open the door to a deeper pullback toward the lower boundary of the ascending channel around $79.10. A daily close beneath that channel floor would shift attention to the 50-day base at $69.23, which serves as a more substantial medium-term support marker.

Technical Chart Reference

XAG/USD: Daily Chart

(The technical analysis of this story was written with the help of an AI tool.)

Silver FAQs

Why do people invest in Silver?

Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.

Which factors influence Silver prices?

Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold’s. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.

How does industrial demand affect Silver prices?

Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.

How do Silver prices react to Gold’s moves?

Silver prices tend to follow Gold’s moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.