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29.01.202600:49 Forex Analyse & Reviews: XAG/USD. Price Analysis. Forecast. Investors Favor Precious Metals

Relevance up to 11:00 UTC--5

Exchange Rates 29.01.2026 analysis

On Wednesday, silver fluctuated between $113 and $114, rising about 1.80% for the day, maintaining upward momentum and positive sentiment, supported by stable demand for safe-haven assets amid risk aversion and a declining US dollar. Interest in precious metals is increasing following statements by US President Donald Trump, who said the weakening dollar does not concern him.

These remarks reinforce the belief that the administration supports the weakening of the national currency to enhance export competitiveness. This narrative further puts pressure on the dollar, thus pushing up dollar-denominated assets.

The white metal is receiving support from the broader political turbulence in Washington: budget deadlock, trade risks, and doubts about the Federal Reserve's independence are fueling skepticism towards American assets. In such conditions, market participants activate capital protection strategies, increasing positions in precious metals as hedging instruments to preserve value during periods of instability.

The Fed's monetary policy meeting is another significant event. It is expected that the US central bank will keep interest rates unchanged in the 3.50% to 3.75% range. Following that, there will be a press conference and a speech by Jerome Powell, both worth watching for signals on the future trajectory of monetary policy. Hints of continued dovishness could further weaken the dollar, thereby enhancing silver's appeal, which is highly sensitive to real interest-rate expectations.

The geopolitical backdrop also favors capital inflows into safe-haven assets, as seen in the recent trajectory of gold: prolonged international tensions and the failure to resolve several major conflicts keep investors in a defensive posture. This stimulates capital flows into precious metals, with silver gaining ground both from its safe-haven status and speculative interest amid its rally.

In conclusion, despite the sharp rise in prices, it should be noted that the growth will continue. The weakening of the US dollar, expectations of more dovish monetary policy, and political uncertainty—these factors continue to support prices of the white metal. However, after such a strong rally, periodic profit-taking cannot be ruled out.

From a technical perspective, silver is targeting its historical high, but the oscillators on the daily chart are in overbought territory, confirming consolidation.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Irina Yanina,
Analytical expert of InstaSpot
© 2007-2026
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