Silver retreats from record highs amid easing geopolitical tensions

Fri Jan 16 2026

Silver prices pulled back from lifetime highs as geopolitical risk premium diminished following US President Donald Trump’s softer stance on Iran, prompting profit-booking by traders who had driven the metal to record levels.

COMEX silver, which had touched $93.70, retreated to hold near the $90 mark, while MCX silver dropped from recent highs of ₹2,92,960 to trade around ₹2,87,000. The pullback came after Trump indicated that he may delay military action against Iran, helping stabilise market sentiment that had been fuelled by fears of Middle East conflict.

According to Rahul Kalantri of Mehta Equities, weaker-than-expected US weekly jobless claims strengthened the dollar, while Trump’s softer Iran stance reduced safe-haven demand for precious metals. The dollar index climbed to multi-week highs as expectations of Federal Reserve rate cuts were pushed back for the first half of the year, creating near-term headwinds for silver and gold.

Market analysts noted a Hanging Man candlestick pattern formation in the previous session, suggesting near-term profit-booking pressure. However, sentiment remains constructive with support emerging at higher levels. Silver has support at $86.10-84.75 with resistance at $92.15-94.40, according to Kalantri.

Despite the correction, structural fundamentals remain strong. Renisha Chainani of Augmont highlighted that earlier fears of US import tariffs on critical minerals had sparked a broad-based rally across commodities, driving silver to all-time highs as traders rushed shipments ahead of possible levies.

Industrial demand from solar energy, electric vehicles, AI infrastructure and electronics continues to underpin silver’s strength. Chainani noted that silver touched the target of $93 and could witness retracement to $84 before moving higher again, with medium-term targets beyond $100 driven by persistent supply deficits and accelerating industrial consumption.

Gold also consolidated, trading marginally below $4,600 per ounce, while Brent crude held below $64 per barrel amid the shifting geopolitical landscape.

Source: https://www.thehindubusinessline.com/