Silver Stuck in Highs, Risks Still Loom
Silver (XAG/USD) attempted a recovery on Thursday (January 22nd), but its momentum wasn't enough to continue. Prices are now consolidating in the $93–$94/oz area, still quite far below the recent record, which reached around $95.89/oz earlier this week.
Risk sentiment improved after Donald Trump withdrew his tariff threats against Europe and claimed there was a "framework agreement" regarding Greenland after meeting with NATO Secretary General Mark Rutte. This more subdued tone has led to a somewhat easing of capital flows into safe-haven assets—and this is usually directly felt in precious metals like silver.
However, the silver bull engine hasn't completely shut down. Silver remains supported by its dual role: a safe haven during times of market tension, and an industrial metal sensitive to manufacturing/technology demand.
Behind the headline volatility, the fundamental factor most restraining prices is tight physical supply—so when the market corrects, silver still has a cushion due to the continual supply.
In conclusion: for now, silver appears to be in consolidation mode—the market is waiting for a new trigger. If global sentiment turns risk-off or the dollar weakens again, the $95+ area could be "lured" again. However, if risk-on sentiment intensifies, silver could potentially "park" at $93–$94 for longer before taking its next direction.
Source: Newsmaker.id
