As January’s trading unfolds, silver has become one of the biggest surprises in the market. Spot silver has now closed higher for four consecutive sessions, with gains of more than 18% in the short term, making it one of the most attractive assets at the moment.

With market confidence wavering and the appeal of the U.S. bond market fading, buying interest in silver has stayed consistently strong. These factors have driven funds back into the precious metals space. As long as these drivers remain in place, buying pressure in silver is very likely to stay robust over the next few trading days.

At the start of 2026, geopolitical events have erupted across multiple regions. Following military intervention in Venezuela, political tensions in Latin America have escalated sharply. Conditions in the Middle East have also become more fraught, with large-scale protests breaking out in Iran and growing speculation that Western countries may intervene. In addition, Fed Chair Jerome Powell has recently become entangled in a criminal investigation, fuelling widespread debate over whether the Federal Reserve’s independence could be compromised. The combination of these factors has left markets short of confidence from the very beginning of the year and driven a rise in short-term risk aversion.

Against this backdrop, the Fear & Greed Index did attempt to rebound early in 2026, but has been hovering around 55, in neutral territory. Recently, the indicator has weakened again and struggled to stay in the “greed” zone, underscoring that overall sentiment remains dominated by caution and hesitation.

Faced with so many uncertainties, precious metals tend to reinforce their status as safe-haven assets. Just as gold has attracted large defensive inflows, silver has also emerged as a temporary haven of choice for investors under the current political and economic conditions.

In fact, demand for silver exchange-traded funds (ETFs) has already begun to recover steadily. As of 12 January, and for the two trading days prior, the SLV silver ETF has recorded consecutive net inflows, with nearly USD 100 million flowing in on a single day. This has, to some extent, restored short-term confidence in silver demand among institutional investors.

With sentiment indicators fluctuating and investors looking for short-term safe-haven assets, silver demand has started to stabilise. As long as this market environment persists, buying pressure in silver is likely to remain firm over the coming trading days.

Market Commentary:

Since late November, silver has embarked on an uptrend that is notably stronger than its previous longer-term price pattern. This new trendline has remained firmly in control, driving silver prices to repeated all-time highs. So far, there has been no meaningful pullback strong enough to threaten this uptrend. However, as prices continue to climb, upside momentum may gradually begin to fade, and the risk of a short-term correction should not be ignored.