The idea of silver reaching $100 no longer sounds unrealistic. It is starting to look possible.
Silver prices crossed $90 per ounce for the first time ever on Wednesday. The rally has picked up speed as traders expect more interest rate cuts from the US Federal Reserve in 2026.
At the time of writing, silver futures on COMEX were trading near $90.51 per ounce. That marked a gain of almost 5% in a single day. Earlier, prices touched a new all time high of $91.34.
Analysts at Citi believe silver could reach $100 per ounce in the first quarter of 2026. They also expect silver to keep outperforming gold.
Both silver and gold have hit record highs this year. Even so, Citi says silver still has more upside compared to gold. Over time, however, the bank expects base metals to grab more market attention.
Global tensions are playing a big role in this rally. Investors have rushed toward safe assets as geopolitical risks rise.
In Iran, civil unrest has turned deadly. Hundreds of protesters have reportedly been killed. People are angry over corruption, high inflation, and the collapse of the rial against the US dollar.
US President Donald Trump has warned of possible military action if the Iranian government continues its crackdown. That threat has added to market fear.
Safe haven demand has also grown because of concerns around the Federal Reserve. Criminal charges were filed against Fed Chair Jerome Powell over alleged fund mismanagement linked to the renovation of the central bank’s headquarters.
Powell rejected the claims. He said they were an excuse to pressure the Fed for political reasons. Investors worry that attacks on the Fed’s independence could damage trust in the US financial system.
These events pushed the US dollar lower. Analysts warned that weakening confidence in the Fed could also hurt the US credit rating.
At the same time, softer inflation data has boosted expectations for rate cuts. Lower interest rates usually help metals like silver and gold because they do not pay interest.
In December, US core inflation rose just 0.2% month on month. The annual figure came in at 2.6%. Both were below expectations.
President Trump welcomed the data. He again called on Powell to cut rates more aggressively.
Despite political pressure, Powell received strong backing. Major Wall Street bank CEOs and global central bank leaders publicly supported him. Several former Fed chiefs also criticized the investigation.
Markets are now pricing in two rate cuts this year. Each cut is expected to be 25 basis points. The first is likely in June.
Supply issues are adding fuel to silver’s rise. Demand is growing fast due to industrial use. Silver is widely used in solar panels, electric vehicles, power grids, and artificial intelligence systems.
Supplies are already tight. The market has faced five straight years of deficits. Inventories are low in China and falling on COMEX, according to Commerzbank.
High prices could slow demand. Some industries may try to use less silver or replace it with cheaper metals where possible. That could limit gains.
Rising prices may also encourage more supply. Miners could increase output. Recycling may also pick up. Still, analysts are unsure if that will be enough to fix the shortage this year.
Commerzbank now expects silver to reach $92 per ounce by mid 2026. It sees prices climbing to $95 by the end of that year.
Technical indicators are flashing warning signs. Analysts say silver is heavily overbought. Even so, prices have kept hitting new highs.
Experts caution that while the rally can continue, the risk of a sharp pullback is also rising.
