Silver Price Forecast: XAG/USD jumps above $90 as AI valuation risks boost safe-haven demand

• Silver price climbs above $90 as AI risks, lower bond yields have boosted demand of precious metals.

• The concerns over sustainable AI capex have resulted in a sharp decline in Nvidia’s share price.

• US-Iran nuclear talks on Thursday concluded on a positive note.

Silver price (XAG/USD) is up 2.4% to near $90.60 during the European trading session on Friday. The white metal strengthens as escalating concerns over valuations of Artificial Intelligence (AI) stocks have prompted demand for safe-haven assets.

On Thursday, the S&P 500 tumbled to near 6,900, and its futures have fallen further during the day, following an over 5% decline in the share price of Nvidia, which is the world’s largest producer of AI and sophisticated chips. Though the company posted stellar first quarter numbers of 2026, investors worry about the sustainability of AI capital expenditure (capex), and overcapacity risks.

In addition to AI valuation concerns, sliding United States (US) treasury yields have also improved the Silver’s appeal. 10-year US bond yields have fallen to near 4%, the lowest level seen in over a year. Lower yields on interest-bearing assets prompt demand for non-yielding assets, such as Silver.

On the geopolitical front, the meeting between the US and Iran over nuclear issues in Geneva on Thursday concluded on a positive note. Oman's Foreign Minister, Badr al-Busaidi, said in early trade that talks between both nations on nuclear issues have made "significant progress,” and they will resume next week in Vienna. Signs of easing geopolitical woes often diminish demand for safe-haven assets.

In Friday’s session, investors will focus on the US Producer Price Index (PPI) data for January, which will be published at 13:30 GMT.

Silver technical analysis

XAG/USD trades higher above $90 as of writing. The near-term bias tilts mildly bullish as price holds above the 20-day Exponential Moving Average, which is around $85 and underpins the recent rebound from the mid-$70s area. The sequence of higher lows from $73.64 through the current consolidation supports a recovery structure rather than a continuation of the prior sharp decline from above $110.

The 14-day Relative Strength Index (RSI) continues to wobble inside the 40.00-60.00 range, demonstrating a sideways trend.

Initial support emerges at the 20-day EMA near $85.00, with a break below exposing the psychological level of $80 and then the February 20 low around $77.50 area as deeper downside levels.

On the topside, immediate resistance aligns with the recent plateau around $92.50, and a daily close above would open room toward $96.00 and then the psychological $100.00 handle.

(The technical analysis of this story was written with the help of an AI tool.)