Silver Surges to Record High Near $90 as Speculative Frenzy Intensifies

Source: Coindoo Original Title: Silver Surges to Record High Near $90 as Speculative Frenzy Intensifies Original Link: Silver surged to just below $90 per ounce on Tuesday, extending a historic rally that has pushed the white metal into uncharted territory.

Spot prices climbed as high as $89.119, marking a new all-time high and capping one of the strongest multi-year runs ever seen in the silver market.

Key Takeaways

• Silver hit a new all-time high near $89, extending a rally of nearly 150% since 2025.
• Speculative momentum and short covering are major drivers, increasing both upside potential and volatility risk.
• Major banks are lifting price targets, with some now openly discussing a move toward $100 per ounce.

The move builds on an explosive advance that began in 2025, when silver rallied roughly 148%. That surge was fueled by a combination of aggressive short covering, speculative momentum trading, and a broader shift toward hard assets as investors sought protection amid geopolitical tensions and macro uncertainty.

Momentum Remains Strong, but Volatility Risks Are Rising

Market participants say the current leg higher is being driven less by fundamentals and more by positioning and momentum. Ole Hansen of Saxo Bank noted that speculative flows have become a dominant force, with trend-following traders chasing upside moves but remaining quick to exit when prices turn. This dynamic has helped accelerate gains but also raises the risk of sharp pullbacks if sentiment shifts.

Technical signals continue to reflect strong upside pressure. Analysts point to sustained accumulation patterns and a steep upward trend structure, suggesting that buyers remain in control for now. However, elevated momentum indicators also imply that silver is entering increasingly stretched territory.

Banks Lift Targets as Silver Breaks Forecast Ranges

Major institutions are now revisiting their outlooks. HSBC had previously projected silver to trade between $58 and $88 per ounce, but prices have already pushed beyond the top of that range. Analysts at the bank have warned that easing supply constraints later in the year could trigger a correction, even as near-term momentum remains supportive.

Other forecasts are more aggressive. Citigroup now expects gold to reach $5,000 per ounce within the next three months and sees silver climbing to $100 over the same period. Strategists argue that silver’s smaller market size makes it particularly sensitive to capital inflows, amplifying price swings during periods of strong demand.

Technical Indicators Signal Strong Momentum, but Overstretched Conditions

Momentum indicators continue to support silver’s bullish trend, though they also point to rising exhaustion risk. On the 4-hour chart, the Relative Strength Index (RSI) is holding in the upper-60s to low-70s range, suggesting strong buying pressure while edging closer to overbought territory. This reflects persistent demand, but also signals that short-term pullbacks could emerge if momentum cools.

The Moving Average Convergence Divergence (MACD) remains firmly positive, with the MACD line above the signal line and the histogram expanding. This confirms that upside momentum is still accelerating rather than fading. However, past rallies show that once the MACD histogram begins to contract at elevated levels, volatility tends to increase as traders lock in profits.

Taken together, RSI and MACD suggest silver’s trend remains intact, but price action near the $90 level could become more unstable as speculative positioning grows.

At the time of writing silver’s price has retraced back to around $86.

Safe-Haven Demand and Speculation Collide

Commentary highlights growing expectations that silver could soon test the $90 level decisively, with some strategists suggesting that further volatility is likely if current conditions persist. Industry analysts have noted that a three-digit silver price is increasingly plausible given the metal’s leverage to macro trends that are already supporting gold.

Meanwhile, voices from market participants note rising interest from retail traders, who are increasingly turning to silver to diversify exposure across metals tied to geopolitical risk and the energy transition.