In early 2026, the precious metals market experienced several uncertainties. The initial decline was mainly due to two factors—market expectations for interest rate cuts became less optimistic, coupled with the impact of the Bloomberg index adjustment, which shrank silver positions by about 9%, making the overall precious metals market appear somewhat weak. However, once the adjustment phase concluded, the fundamentals regained strength.

Currently, there are quite a few factors supporting the rise of precious metals. Maintaining an accommodative policy stance is fundamental, and geopolitical instability is also fueling the upward momentum. But the strongest driving force behind the precious metals rally, frankly, still comes down to supply and demand. Central banks around the world are aggressively buying, and ETF capital inflows have surged significantly, directly boosting market demand. Notably, silver's price increase has been even more vigorous than gold's, because besides its financial attributes, silver also has industrial uses, which increases supply pressure. The supply-demand gap has further widened, ultimately causing silver prices to break through the $90 mark.

From a technical perspective, the one-hour chart for silver shows a rebound after testing the moving averages, recently hitting new highs. The moving average system remains in a standard bullish arrangement, indicating a clear bullish trend. However, attention should be paid to the KD indicator showing a death cross at high levels, suggesting short-term profit-taking may occur. It’s advisable not to rush into a bottom-fishing position; waiting for a pullback to the support level of 88.85 before taking a light long position would be more prudent. The upper target is 94.75, with a stop-loss set at 85.90.

Support level: 88.85; Resistance level: 94.75