Silver prices experienced a dramatic reversal on Thursday, falling over 8% intraday to hit a day's low of $86.12 after nearly touching the $94 mark just a day earlier. The sharp pullback comes after silver posted a strong rally in recent sessions, with traders pushing prices close to record territory on the COMEX exchange.

Technical Resistance and Market Dynamics

The following table highlights the key price levels and movements:

According to market watchers, the pullback reflects a combination of technical resistance, profit-booking, and macro triggers. Analysts note that silver touched its key resistance level of $93 per ounce before seeing a retracement, aligning with earlier projections.

Expert Analysis and Outlook

Renisha Chainani, Head of Research at Augmont, believes that this phase of consolidation is not unexpected. She maintains that a sustained breakout above the $92–$93 zone would be an important technical step before the $100 level can realistically be considered. However, she also notes that breaching the psychological $100 mark within the month may still require a significant catalyst.

Chainani adds that macroeconomic factors remain broadly supportive, citing expectations of lower real interest rates and a weaker U.S. dollar as reducing the opportunity cost of holding precious metals. Additionally, elevated geopolitical tensions continue to support silver's safe-haven appeal.

Industrial Demand and Supply Dynamics

Supporting the bullish outlook, Jigar Trivedi, Senior Research Analyst - Currencies & Commodities at Reliance Securities, had earlier pointed to a surge in industrial consumption as a key factor in silver's momentum. He highlighted tightening supply dynamics amid strong demand from:

• Energy transition sectors
• Electronics industry
• Electrification segments

While acknowledging elevated volatility ahead, Trivedi had projected a short-term upside in MCX Silver March contracts up to ₹3,00,000 per kg, contingent on structural deficits persisting.

Technical Perspective

From a technical standpoint, analysts had identified the following key levels:

The recent price action appears to validate those levels, with silver approaching the lower band. As per prior commentary in technical outlook reports, a retracement to $84 (approximately ₹2,60,000 per kg) was expected before any potential renewed upward move.

Market Outlook

The metal's sharp retreat underscores the challenges it may face in maintaining a consistent uptrend. While the broader macro setup remains constructive, market participants will be watching how silver reacts during upcoming trading sessions. The combination of technical resistance at key levels and profit-booking activity has created a pause in the recent bullish momentum, though underlying fundamentals continue to support the precious metal's longer-term prospects.

Silver prices have surged above $91 per ounce on COMEX, intensifying market speculation about whether the white metal could breach the psychological $100 per ounce threshold before January concludes. The rally has gained significant momentum in recent sessions, drawing close attention from market participants as multiple factors converge to fuel bullish sentiment.

Supply-Demand Fundamentals Drive Price Action

The current price surge stems from a fundamental imbalance between supply and demand dynamics. According to Jigar Trivedi of Reliance Securities, the momentum reflects tightening physical markets where mine output has struggled to keep pace with rising industrial consumption.

The increased utilization of silver in energy transition technologies, electronics, and electrification sectors has reinforced the metal's critical role beyond its traditional precious asset status. These applications face limited viable substitutes, creating sustained industrial demand pressure.

Macroeconomic Conditions Support Rally

Favorable macroeconomic conditions are providing additional support for the precious metal's ascent. Expectations of lower real interest rates and a softer US dollar are reducing the opportunity cost of holding precious metals. Simultaneously, heightened geopolitical risks have enhanced silver's appeal as a safe-haven investment.

Renisha Chainani, Head of Research at Augmont, acknowledges these factors provide solid support for silver prices. However, she notes that breaching $100 within the month would still require an extraordinary catalyst to materialize.

Technical Levels and Price Targets

From a technical perspective, analysts are monitoring key resistance levels that could determine silver's path toward $100. Chainani identifies a sustained breakout above the $92.00 to $93.00 zone as an important technical step before the $100 target comes into realistic view.

Trivedi notes that MCX Silver March contracts could potentially appreciate to ₹3,00,000 per kg during the month, reflecting the bullish outlook in domestic markets.

Cautionary Perspectives and Risk Factors

Despite the upward momentum, market experts are advising caution regarding the sustainability of the rally. Trivedi emphasizes that the path to $100 is unlikely to be linear, with several constraints potentially impacting price progression:

• Elevated volatility expectations
• Potential supply-side responses to higher prices
• Possible policy surprises affecting market dynamics
• Long-term sustainability dependent on structural deficit persistence

Author and investor Robert Kiyosaki has voiced a more guarded perspective, warning on social media platform X that "silver is peaking" and suggesting a pullback may be imminent. While reaffirming his bullish stance and stating he would buy silver up to $100, Kiyosaki cautioned that widespread profit-taking by retail speculators could trigger a sharp correction. The longtime silver investor, who has been invested in the metal since the 1960s, emphasized patience and urged investors to remain wary of market overexuberance.

Market Outlook

As silver trades near its highest levels in over a decade, the market stands at a pivotal juncture. The potential for reaching the $100 mark in the coming weeks will depend on a delicate interplay of industrial demand sustainability, supply constraint persistence, macroeconomic developments, and investor behavior patterns. The convergence of structural supply-demand imbalances with favorable macroeconomic conditions has created a compelling backdrop for continued price appreciation, though volatility and correction risks remain present.