Key Moments
- XAG/USD trades at $87.05 after recovering from one-month lows just under $72.00.
- Immediate resistance is seen in the $88.00-$90.00 band, with support near $71.37 and the $60.00 area.
Price Action: Recovery From One-Month Lows
Silver (XAG/USD) is posting moderate gains on Tuesday, quoted at $87.05 at the time of writing. The metal has staged a rebound after dropping more than 30% over the prior two sessions, when prices fell to one-month lows just below the $72.00 threshold.
After that steep decline, buyers have stepped back in, helping XAG/USD climb back above the $87.00 mark. However, the recent volatility keeps the broader technical picture cautious.
#Silver is back on track to $87 now. Is now the right time to enter?
But I guess there won’t be another rally like before.#StockMarketIndia pic.twitter.com/zPftnmLEWv
— APB (@AnilPB7) February 3, 2026
Market Sentiment and Macro Backdrop
In contrast to their typical behavior, precious metals are advancing on Tuesday in an environment of improved risk sentiment. A trade agreement between the US and India, along with reports of forthcoming nuclear negotiations with Iran, has lifted investor confidence and supported demand for riskier assets.
This more optimistic backdrop is coinciding with the bounce in silver, even as traditional safe-haven dynamics would not usually favor the metal in such conditions.
Technical Overview: Key Levels for XAG/USD
The latest move higher has pared some of silver’s recent losses, but technical indicators continue to reflect a bearish bias.
| Indicator / Level | Current Signal / Zone |
|---|---|
| MACD | Below Signal line and below zero; negative histogram narrowing toward zero |
| RSI | Turning higher, suggesting easing downside pressure, but still below the 50 mark |
| Immediate resistance | Monday’s highs around $88.00 |
| Next upside levels | $100.00 round figure, then intra-day resistance near $104.00 |
| First support | $71.37 monthly low |
| Deeper support zone | Early December highs and mid-December lows around the $60.00 area |
On the upside, XAG/USD is expected to encounter initial resistance around Monday’s peak in the $88.00 region. A sustained break above that area would turn attention to the psychological $100.00 level, followed by intra-day resistance around $104.00.
On the downside, the first notable support is located at the monthly trough of $71.37. Below that, additional backing is seen around the $60.00 area, which corresponds to early December highs and mid-December lows.
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.
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