XAG price remains on the radar of most investors as silver leads among precious metals in recent weeks. With the price holding above $80, analysts are speculating whether $100 is the next target, and how quickly it could happen.
Amid the recent rallies in precious metals, CME is preparing for possible stress and has introduced new margin rules.
What is driving the rise in silver prices?
Silver is making another strong move after stabilizing above the psychological $80,00 level. As of now, the precious metal is trading at $83.59 per ounce, just slightly below the peak level of $85.94. Silver prices are now at their highest level since the rise to $83.34 on December 29.
Silver's enormous 160% growth over the past year is attributed to a combination of several factors:
Investors are flocking to safe assets due to geopolitical uncertainty.
Expectations that the U.S. central bank will lower interest rates in March, and
The dollar is weakening.
In this context, silver is experiencing strong industrial demand from sectors such as electric vehicles and renewable energy.
Interestingly, we have seen momentum in several different asset classes in recent days, even after the U.S. military intervention in Venezuela and the arrest of Venezuela's president Nicolás Maduro.
Although one might expect such an event to lead to a flight to safe havens like precious metals, stocks and Bitcoin have also received a boost following the news. This suggests that we are currently witnessing a so-called 'everything rally', at least in the short term.
In his usual provocative style, precious metals investor Peter Schiff has recently dismissed the development of Bitcoin (BTC has risen about 6.5% in the last 7 days) and believes investors should instead focus on precious metals.
As reported by Coinpaper, Schiff claims that we are now in the early phases of 'what is likely to become the largest bull market for precious metals ever'.
Is silver really ready for further gains, or is the red-hot metal heading towards a cooling period? Let's take a closer look at where the silver market stands now.
Will silver reach $100 per ounce?
In the short term, U.S. intervention in Venezuela is considered the main driver in the silver market, which has caused the metal to approach all-time highs again.
U.S. President Donald Trump has stated that further military actions may come if Venezuela's interim authorities do not comply with U.S. demands. This adds another layer of uncertainty to an already volatile situation.
This provides a clear narrative of increased demand for safe havens like precious metals.
From a more long-term perspective, investors are also betting on silver (and other precious metals) because there is a strong expectation of further interest rate cuts from the U.S. central bank, among other things due to Trump's ongoing pressure.
Right now, the market is anticipating at least two rate cuts in 2026, but upcoming labor market numbers and inflation figures will be closely monitored.
A weaker labor market will increase the likelihood of interest rate cuts, while higher inflation will make lower rates less likely.
Low interest rates are favorable for non-yielding assets like silver, as they reduce the opportunity cost of holding them.
For a very bullish silver price forecast of $100 or more per ounce to become a reality, several bullish forces must coincide simultaneously.
Demand from the industry must remain strong, driven by continued growth in solar panel installations, electrification, and electronics, while supply from mining remains tight and fails to respond quickly.
At the same time, silver must experience persistent demand due to its role as a safe haven during economic or financial turmoil and as a hedge against inflation.
Together, persistent physical demand, limited supply, and renewed investment interest could push silver up into the $100 range.
Prices well above $100 will likely require a more extreme triggering factor, such as runaway inflation, a major financial crisis, a currency shock, or a real physical shortage that reveals an imbalance between paper silver and real metal.
