Silver’s latest surge has pushed the white metal into
uncharted territory, as political drama around the Federal Reserve, tighter
market rules and mounting supply tensions converge to send prices through
another record.
Wednesday trading saw silver power to a new all‑time
high of around $92 an ounce, building on a dramatic move the previous day that also
pulled gold to fresh peaks and amplified debate about how far this
precious‑metals cycle can run.
Silver Extends Record-Breaking Run
Silver traded around $88 on Tuesday, up about 3% on
the day and above the previous record just over $86 set on Monday.
The latest move capped a sharp rally that began late
last year and accelerated after Federal Reserve Chair Jerome Powell disclosed
that the U.S. Department of Justice had served him subpoenas related to the
multibillion‑dollar renovation of the Fed’s headquarters and his testimony on
the project.
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The Justice Department’s criminal investigation into
Powell and the renovation of the Fed’s Washington headquarters has injected
rare personal jeopardy into U.S. monetary policy.
Powell confirmed in a video statement that he had
received subpoenas threatening criminal indictment and described the move as
“unprecedented action” that must be seen in the context of what he called
ongoing political pressure on the central bank.
CME Tightens Margins After Wild Swings
The speed of the move forced exchanges to respond.
Late Monday, CME Group adjusted margin requirements on precious‑metals
contracts, shifting from fixed dollar amounts to a percentage of each
contract’s notional value.
With silver trading above $90 per oz right now, up another 5% tonight, I thought I would share an interesting chart showing the different silver mining stocks.These are all of the silver mining stocks that call themselves “silver miners”. but it shows what percentage of their… pic.twitter.com/L8KwSMDOMA
— Wall Street Mav (@WallStreetMav) January 14, 2026
The operator framed the change as part of a normal
volatility review aimed at keeping collateral in line with risk, but the timing
highlighted concern over the scale of intraday swings in both silver and gold.
At the same time, according to EuropeanBusinessMagazine,
consumption in sectors such as solar power, electronics, photonics and electric
vehicles has expanded steadily. Manufacturers value silver for its conductivity
and reliability, and many applications offer few immediate substitutes at
scale.
Analysts argue that this industrial pull has turned
silver from a pure monetary hedge into a critical input for energy transition
and digital infrastructure, which keeps physical demand robust even when
financial flows waver.
The rally has also exposed gaps between different
parts of the market. Spot prices for physical silver have tracked higher than
the net asset value of some exchange‑traded funds, reflecting timing
differences and liquidity frictions between physical inventory and
exchange‑listed products.
XAGUSD Technical Analysis
Silver’s 14‑day RSI is sitting deep in
overbought territory around the mid‑70s after the spike toward 90–91, confirming strong upside momentum but also flagging
elevated risk of a momentum pause or shake‑out rather than a fresh “value” entry.
On the intraday daily chart, the immediate level to to watch is $81, which act as the near-term support level. If the price goes beyond this level, the next support level to watch is at $71.
‘Resource Nationalism’ Reshapes Metals Flows
CNBC has spotlighted another theme that now sits
alongside safe‑haven flows and industrial deficits: “resource
nationalism.” Over the past two years, major powers have leaned more
aggressively on control of key commodities as a tool of economic influence. The
United States escalated tariffs and other trade barriers, while China responded
with tighter export controls on strategic materials, including rare earths and,
in late 2025, silver.
‘Resource nationalism’ could propel gold to $5,000 and silver to $100 this year, investors say https://t.co/OzT1iivZd7
— CNBC International (@CNBCi) January 14, 2026
China’s decision to restrict silver exports landed in
a market that already relied on the metal for high‑tech applications and
industrial production. The move reframed silver not only as a financial asset
but also as a strategic resource in the evolving trade confrontation between
Washington and Beijing.
In parallel, political flashpoints — from Russia’s
full‑scale invasion of Ukraine to debates over Venezuelan oil and even talk in
Washington about asserting more control over Greenland — reinforced the sense
that supply chains sit inside a broader geopolitical contest.
For retail traders, the challenge is less about identifying the target and more about execution: sizing, drawdown tolerance, and timing entries in volatile conditions. These execution-level questions are increasingly being addressed in live environments, including trader-focused sessions at Dubai’s Trading Festival, where strategies are dissected beyond headline price targets.
Ambitious Targets for $100 Silver
Against this backdrop, some money managers see scope
for much higher prices in the near term. Several investors argue that the same
combination of geopolitical tension, trade friction and constrained supply that
drove record gains in 2025 remains in place or has intensified.
Forecasts of $5,000 gold and $100 silver this year
rest on a few linked assumptions: that central banks maintain a dovish tilt,
that rate‑cut expectations remain in play, and that political shocks keep
investors on edge.
The Powell investigation has raised fresh questions
about the relationship between politics and monetary policy in the United
States. Concern that the Fed could face direct political interference, or that
its leadership could change course under pressure, feeds into a wider debate
about long‑term inflation risks and the credibility of U.S. institutions.
From @WSJopinion: DOJ’s criminal subpoena to Fed Chair Jerome Powell is a self-defeating fiasco. Picking a fight with the Fed—and the bond market—over an issue that voters will find confusing and irrelevant is lawfare for dummies.https://t.co/aRvWbY7f5G
— The Wall Street Journal (@WSJ) January 13, 2026
Comments from some officials and market participants highlight unease over
whether rate‑cut cycles and unconventional measures will ultimately erode the
purchasing power of the dollar.
In response, a group of global central bankers,
including the heads of the European Central Bank and the Bank of England,
publicly expressed support for Powell and the Fed.
Geopolitics, Deficits and What Comes Next
For now, the forces pushing silver higher show little
sign of easing. Geopolitical friction between the United States and China still
drives policy choices around trade and access to strategic resources.
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Supply deficits in the silver market persist, while
industrial demand continues to rise in sectors that underpin long‑term energy
and technology trends. The ongoing reassessment of central bank independence,
triggered in part by the Powell probe, keeps safe‑haven demand alive.
That mix leaves investors watching several levers at
once: the path of rate decisions, any shift in export controls, and whether
political tensions ease or intensify. If central banks stay dovish and
geopolitical risks remain elevated, both silver and gold could retain strong
support even after setting new records.
This article was written by Jared Kirui at www.financemagnates.com.
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