Silver Price Forecast: XAG/USD jumps above $81.50 on strong industrial demand

Silver price (XAG/USD) rises to near $81.50 during the early Asian trading hours on Monday. The white metal extends the rally amid rising demand from industrial applications. Traders will closely monitor the developments surrounding the US-Iran peace deal for fresh impetus. 

Silver’s demand is driven by photovoltaics, electromobility, semiconductors, and AI infrastructure. Several analysts expect industrial demand to exceed supply in 2026 as well. Additionally, investment demand also remains robust. 

According to the latest World Silver Survey data, global physical investment demand in 2025/early 2026 was at a multi-year high. This was mostly due to Indian investors and a significant change in European precious metals trading toward silver.

On the other hand, concerns that major central banks might maintain their restrictive course longer in light of rising energy prices could weigh on the precious metals. It’s worth noting that Silver is often used amid geopolitical uncertainty but does not yield interest, making it less attractive when interest rates are high.

US President Donald Trump rejected new Iran peace proposals to end the war as "totally unacceptable." Tasnim news agency said Tehran's proposal included an immediate end to the war on all fronts, a halt to a US naval blockade, and guarantees of no further attacks on Iran.