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Silver prices (XAG/USD) rose for the third consecutive day, approaching $90 amid improved market sentiment and reduced demand for the US Dollar. The commodity gained traction despite ongoing geopolitical tensions in the Middle East, which typically drive safe-haven demand for gold. Analysts attribute the rally to broader risk-on mood, with investors shifting capital away from USD and into alternative assets like precious metals. For traders, the move signals a potential shift in market dynamics. A sustained break above $90 could attract more buyers, while a pullback might test support near $88.50. The Middle East crisis, though a traditional gold driver, hasn't dampened silver's appeal, suggesting investors are prioritizing industrial demand and inflation hedge properties over geopolitical safety. Looking ahead, key focus areas include USD momentum, inflation data, and industrial demand trends. If the USD weakens further against the euro or yen, silver could see renewed buying interest. Conversely, a stronger USD or easing Middle East tensions might pressure the metal. Traders should monitor the $90 psychological level and volume patterns for confirmation of a bullish breakout.
