Silver Breaks Through $100: Euphoria or Correction Alarm?
Silver finally broke through the psychological $100/oz level and remained there on Friday (January 23rd), extending a wild rally that began in 2025. On the spot market, silver traded around $100–$102/oz, confirming the continued euphoria—mainly due to retail buying, momentum chasing, and tight physical supply in several market segments.
Silver's rise coincided with gold's continued volatility. Gold prices hovered just below the $5,000/oz threshold, keeping the "precious metals escape" narrative alive as the dollar weakened and markets remained sensitive to geopolitical headlines.
But behind the celebration, correction alarms began to sound. Several technical analysts believe that excessively rapid gains often lead to sharp "inhalations"—especially when positions are already crowded and volatility increases.
From a fundamental perspective, Bank of America assesses a "fair" silver price currently closer to $60/oz. The reason: demand for solar panels is estimated to have peaked in 2025, while industrial demand could be depressed if prices become too high.
Another signal comes from the sharply narrowing gold-silver ratio: for the first time in about 14 years, it only takes approximately 50 oz of silver to buy 1 oz of gold. This is usually read as a sign that silver is "grossly outperforming" gold—and that room for a correction is opening up if sentiment changes.
Source: Newsmaker.id
