1.22 Morning Silver Analysis: Following gold's correction, the upward momentum remains intact

This morning, silver experienced a slight pullback, with London Silver currently trading around $92.2, down $3 from yesterday's high, but the year-to-date increase still exceeds 30%, and the overall strength has not been disrupted.

This wave of correction is a typical profit-taking move — previously, silver followed gold's rapid surge, rising too sharply. Many took profits at high levels, which is normal for a short-term pause at a high, not a sign of a trend reversal. After all, the core logic supporting silver's rise remains intact: on one hand, it benefits from gold's strength, with geopolitical tensions and expectations of Fed rate cuts fueling safe-haven and easing flows into precious metals; on the other hand, industrial demand is very strong — solar, new energy vehicles, and AI chips all rely on silver. Global silver supplies have been insufficient for five consecutive years, inventories are at historic lows, and the supply gap cannot be filled quickly.

Today, focus on two key levels: first, the support below at $92-93, which is the recent consolidation zone. Holding this level indicates a strong sideways trend; second, the critical line at $90. As long as it does not break below, the upward potential remains. On the upside, watch yesterday's high near $94.8. If broken, it likely targets $96-100. Also, keep an eye on gold's movements, as silver's correlation with gold is very strong. If gold continues to hit new highs, silver will likely be driven higher as well.

In terms of trading strategy, avoid chasing highs! If the price stabilizes at $92-93, consider adding small long positions; if it encounters resistance above $94.8, try small short positions. Silver is more volatile than gold — it can rise sharply and fall quickly. Always set stop-losses to avoid being caught by short-term fluctuations.