Silver remains firmly in a bullish structure as prices consolidate just below the $110 handle, following one of the strongest multi-month…
Written by:
Arslan Butt
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Monday, January 26, 2026
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2 min read
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Last updated: Monday, January 26, 2026
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Quick overview
- Silver prices are consolidating just below the $110 level after a significant multi-month rally, currently trading around $107.50.
- The bullish trend is supported by a weaker US dollar, easing real yields, and ongoing geopolitical uncertainty, with steady accumulation observed in recent price action.
- Technical indicators show that silver remains within a rising channel, with key support at $103.30 and a critical resistance zone between $109.50 and $110.00.
- Short-term price movements will determine whether silver can break above resistance to target $113.50, while a drop below $104.90 could lead to deeper consolidation.
Silver remains firmly in a bullish structure as prices consolidate just below the $110 handle, following one of the strongest multi-month rallies in the metal’s history. As of the latest session, XAG/USD is trading near $107.50, easing modestly after briefly testing the $109–$110 resistance zone. While momentum has cooled, the broader trend continues to favor the upside.
The recent advance reflects a combination of macro support and technical strength. A weaker US dollar, easing real yields, and persistent geopolitical uncertainty have reinforced demand for precious metals, with silver benefiting from its higher volatility relative to gold. Unlike short-lived speculative spikes, recent price action suggests steady accumulation, with pullbacks attracting buyers rather than triggering liquidation.
Silver (XAG/USD) Price Forecast: Technical Structure Remains Constructive
On the 4-hour chart, silver continues to trade within a well-defined rising channel, which has guided price action since the rebound from the sub-$90 area. The upper boundary of this channel currently aligns with the $109–$110 zone, explaining the hesitation seen in recent candles. Several candles near this level display smaller bodies and upper wicks, signaling consolidation rather than distribution.
[[XAG/USD-graph]]
The mid-channel trendline, currently near $103.30, has repeatedly acted as dynamic support. This level also coincides with a prior breakout zone, reinforcing its technical relevance. Below that, the next major support sits near $97.80–$98.00, where the lower channel boundary and previous resistance converge. As long as price remains above this area, the broader bullish structure remains intact.
Momentum Signals Pause, Not Reversal
Momentum indicators suggest cooling conditions rather than a trend change. The Relative Strength Index (RSI) has eased to around 66, down from overbought levels, while remaining firmly in bullish territory. Importantly, there is no bearish divergence visible between price and momentum, reducing the likelihood of a deeper correction at this stage.
From a Fibonacci perspective, the recent pullback has remained shallow, holding well above the 0.382 retracement of the latest impulse leg. This behavior is consistent with strong trending markets, where consolidation tends to resolve through time rather than price.
Silver Price Chart – Source: Tradingview
Silver Price Outlook
Silver’s short-term direction now hinges on how price behaves around the $109.50–$110.00 resistance zone. A clean break and sustained hold above this area would signal trend continuation, opening the door toward $113.50, followed by a potential extension toward $118.40 along the upper channel projection.
On the downside, a move below $104.90 would likely trigger a deeper consolidation toward $102.20 or $99.90, but such a pullback would still be viewed as corrective unless price breaks below $97.80.
Silver Trade idea: Buy pullbacks toward $103–$100, targeting $114, with a stop below $97.80.
Overall, silver remains embedded in a momentum-driven uptrend. While near-term consolidation is likely after the recent surge, the technical structure continues to favor higher prices as long as key support levels hold.
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.
His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.
His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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