Silver Forecast: Silver Trades Near $110 After Breaking Key Resistance

By Patrick Timely

Silver continues to trade near record levels, consolidating just below its recent all-time high as bullish momentum remains intact across the precious metals complex. At the time of writing, silver is trading around $109.61 per ounce, after briefly touching a new ATH near $110.55 earlier in the session.

The move marks a continuation of a sharp rally that has pushed silver decisively above the psychologically important $100 level, placing the metal firmly back in focus for both institutional investors and short-term traders.

Silver breaks key levels as institutional outlook turns bullish

Silver’s advance gained traction after clearing resistance around $105, a level that had capped upside attempts earlier in the year. The breakout coincided with increasingly bullish commentary from major banks, including Citigroup, which recently raised its near-term silver target to $110 per ounce.

Citi’s commodities team pointed to a combination of tight physical supply, rising geopolitical risk, and renewed uncertainty around monetary policy as drivers behind the move. The bank also reiterated its view that silver could outperform gold during the current phase of the rally, citing silver’s sensitivity to both investment flows and industrial demand.

The rally above $105 shifted the market structure decisively higher, turning prior resistance into support and opening the door for continued upside as long as the price holds above the breakout zone.

Supply constraints and industrial demand support the trend

One of the key pillars behind silver’s strength remains tight physical market conditions. Inventories at major exchanges have been drawn down over recent quarters, increasing the risk of localized supply squeezes and amplifying price moves during periods of strong demand.

At the same time, silver’s role as an industrial metal continues to support the broader bull case. Demand from sectors such as solar energy, electric vehicles, and electronics manufacturing has remained resilient, reinforcing the idea that silver’s rally is not driven purely by speculative flows.

This dual demand profile sets silver apart from gold and helps explain why price moves can accelerate rapidly once key technical levels are breached.

Macro and currency factors add fuel to the rally

Silver’s push toward record highs has also been supported by developments in currency markets and broader macro uncertainty. A weaker U.S. dollar has made dollar-denominated commodities more attractive to global buyers, while renewed debate around trade policy, tariffs, and central bank independence has increased demand for hard assets.

Recent commentary around potential currency intervention and heightened political pressure on the Federal Reserve has added another layer of uncertainty, contributing to safe-haven inflows across the metals complex. Gold’s surge above $5,000 has further reinforced bullish sentiment, with silver tracking closely behind and, at times, outperforming on a percentage basis.

That said, some market participants have cautioned that silver’s rally has become increasingly crowded. Analysts have warned that sharp moves higher can be followed by fast interim corrections, particularly if the dollar stabilizes or geopolitical tensions ease.

Key levels to watch in the near term

From a technical perspective, the $110 area now stands out as a critical zone. Holding above former resistance near $105 would help preserve the bullish structure, while sustained trade above $110 could attract further trend-following interest.

On the downside, a loss of momentum that pushes silver back below the $100–$105 range would likely trigger profit-taking and a period of consolidation. For now, price action suggests buyers remain in control, but volatility is elevated.

CoinCodex’s 6-month silver price forecast

CoinCodex’s silver price prediction outlines an extremely aggressive upside path if current momentum were to persist. According to the projection, silver could average around $113 in January, before rising toward $144 in February and over $200 by March, with model targets extending as high as $730 by July 2026.

While these figures highlight the scale of upside implied by trend-following models, they also underscore the high-risk, high-volatility nature of such projections. Moves of this magnitude would require sustained macro stress, continued dollar weakness, and uninterrupted investment demand.

Source:: Silver Forecast: Silver Trades Near $110 After Breaking Key Resistance