XAG/USD climbs past $90 as easing tariff concerns and ongoing supply shortages drive the upswing

Silver Soars on Safe-Haven Demand, Reclaims $90 Level

On Tuesday, XAG/USD jumped nearly 4%, closing just below $91 as investors flocked to safe-haven assets. This marks a significant rebound from the late January plunge, when silver tumbled from record highs above $121 to a February low near $64—a dramatic 47% decline. Since then, silver has established a base, forming a series of higher lows between $76 and $90 over the past three weeks. The latest surge pushed prices above the key $90 threshold for the first time since the sharp correction.

The renewed appetite for precious metals was sparked by President Trump’s announcement of a 15% global tariff after the Supreme Court overturned his previous trade policies. Silver’s unique role as both a store of value and an industrial commodity intensified the rally. COMEX registered inventories have fallen to historic lows under 100 million ounces, and physical silver remains scarce in London. This supply crunch is fueled by unprecedented demand from solar energy manufacturers, artificial intelligence data centers, and electric vehicle production, while mining output remains steady at around 820 million ounces with little capacity for expansion.

On the currency front, the Federal Reserve kept interest rates steady at 3.50% to 3.75% in January. However, minutes from the latest meeting revealed that several officials are open to further rate hikes if inflation persists above target. With Fed Chair Powell’s term ending in May 2026, expectations are growing that his successor will favor a more accommodative policy stance, potentially boosting non-yielding assets like silver later this year.

Technical Outlook: Silver Maintains Strength Above Key Averages

Silver continues to trade well above its rising 50-day Exponential Moving Average (EMA) near $81 and the 200-day EMA around $59, both of which confirm the ongoing bullish trend since late 2024. The robust recovery from the February low has recaptured about half of the January losses, with prices now firmly above $90. The Stochastic Oscillator has turned bullish and is climbing toward overbought territory, indicating that upward momentum is building. If silver can sustain a move above $92, it could target the $96 to $100 range. Conversely, a drop below $87 would put the focus back on the 50-day EMA as the next support level.

XAG/USD Daily Chart