Silver Price Forecast: Industrial Demand Counters Fed Pressure as Bulls Defend $60 Support

Quick overview

Silver bulls have a key support at around $60.05 that is supported by both industrial demand and macro headwinds. A major macro factor is pushing in a positive direction, while another macro factor is pushing in a negative direction. Silver is currently in the middle of this tug-of-war.

Demand from the green transition is a macro-positive over the long run, but higher rates remain negative. While geopolitical risk has cooled somewhat, this is not a macro-negative. However, supply deficits and growth in industrial demand support positive conditions for the silver price.

With the price holding above the main range of support, traders are asking: is silver going to return to the $61.55 resistance, or is this part of a broader down move heading toward the next set of supports?

Supply Deficits and Green Energy Demand Continue to Support Silver

Silver’s fundamentals have continued to remain favorable. According to the Silver Institute, 2026 will be the sixth consecutive year of a supply deficit on a global basis; the market is on pace to face a shortage of about 46 million ounces. The industry cannot increase its output quickly, because most silver production occurs as a byproduct of mining other base metals, like copper, lead and zinc. Meanwhile, demand from the industrial sector has remained on the rise.

More than half of global silver consumption now comes from industrial applications, with the solar sector accounting for a significant share, as governments continue to invest heavily in green energy initiatives, while electric vehicles, 5G, AI data centers, and other electronics are helping to keep the demand narrative strong.

China has played an important role for silver, as the world’s largest user of the precious metal. Ongoing demand from this source has kept global supplies relatively lean.

Over the short term, sentiment continues to be affected by economic news. Following the implementation of the Islamabad Memorandum, the United States and Iran’s recent interim agreement, geopolitical fears have reduced, in turn leading to less of a demand from safe haven assets. Oil prices have fallen, which in turn reduces fears around inflation and lifts the economy.

However, with interest rates remaining higher for longer, higher yields on government bonds along with a stronger dollar, demand from silver is hurt given there is no income generated from the precious metal. That said, weaker job data has supported a market expectation of interest rate cuts in the future.

Silver Price Forecast: Descending Trendline Keeps Silver Below $61.55 Resistance

A broken descending trendline is holding the price below the $61.55 level. A breakdown below the descending line on the four-hour chart led to a price decline below $60 and lower lows, while lower highs continued to hold the structure.

Buyers now need a move above $61.55 to have a better outlook. This price represents the breakdown point from the previous support area, which has flipped to become resistance, and the price is still below a descending trendline. A higher close above the $61.55 level would lead to a potential move to the $62.72 and $64.27 levels.

On the other side, immediate support sits at the $59.06 price level. A lower close below that level would lead to the $57.51 level, which would in turn lead to the $55.61 area. The 200-period exponential moving average at the $65.89 level continues to hold as resistance. The RSI is at the 36 level and is near oversold. The histogram of the MACD remains at negative values and has remained fairly flat.

Silver Price Outlook

Longer-term drivers of supply deficits, renewable energy and continued growth across industrial usage are keeping the outlook bright for silver in the long term, although higher-for-longer rates and a stronger US dollar alongside an eased geopolitical backdrop are continuing to pressure prices.

$61.55 is the level to reclaim for buyers, with a breakdown below the $59.06 level leading to a move toward $57.51, in addition to continued support from economic news.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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