Silver Price Forecast: XAG/USD Stabilize at $72.90 as Industrial Deficit Clashes with Macro Headwinds

Quick overview

Silver (XAG/USD) is struggling to stick a recovery during the Friday, April 3, 2026 session after slumping by a pretty dramatic 6 percent on Thursday – it’s currently hovering around $72.90. The white metal is well-known for being super volatile compared to gold and right now its caught in a real tug of war between a structurally bullish picture for supply and demand and a nasty macroeconomic environment with a super strong U.S. Dollar and the expectation that interest rates are going to keep going up for a while.

Geopolitics vs Safe Havens

Silver often acts as a secondary safe haven but the Middle East has turned out to be a bit of a double-edged sword for it. President Trump’s recent comments on the Iran situation which were pretty vague on when a ceasefire would happen initially sparked a bit of a flight to quality, but then the resulting jump in oil prices has reignited inflation jitters which in turn has strengthened the dollar even more.

This all adds up to a pretty tough time for silver:

• The Opportunity Cost of Silver: As a non-yielding asset silver can’t compete with the rising bond yields which are currently at multi-year highs.
• The Stronger Dollar Keeps Prices High: The DXY Index is moving towards 100 which is making silver look more expensive to buyers in countries outside the US and that’s hitting physical demand for silver in key markets like India.
• Industrial Use Hits Silver Harder: Unlike gold, silver is used in loads of industrial applications so a prolonged energy shock could make people nervous about demand for silver in the EV and solar sectors.

Structural Shortages Will Provide A Floor For Silver

Despite the current price slump silver’s fundamental position is looking pretty good. Analysts are predicting that 2026 will be the sixth year running where there’s a global shortage of silver – and the shortfall is expected to be around 67 million ounces.

Key reasons for thinking silver is going to bounce back long-term are:

• The Demand For Green Tech Keeps Going Up: Demand for photovoltaics and 5G infrastructure is still surging and that’s outpacing mine supply which isn’t very elastic because it’s a byproduct of base metal mining.
• Investor Appetite Remains Strong: Sure, institutional investors have seen outflows from some silver ETFs but physical demand for silver in Asia is still going strong, that’s providing a kind of “floor” for the price at $65.00.
• Big Industry Players Are Still Bullish On Silver: High profile streaming deals between big companies are giving a thumbs up to silver’s long-term value.

Technical Outlook: Silver Needs To Hold Above $69.75

From a technical point of view silver is going through a pretty high-stakes consolidation period. After a pretty sharp rejection from the $74.66 resistance zone silver has found support near a key rising trendline.

• Immediate Support At $69.75: A break below this level is going to send silver tumbling towards the $61.55 March lows.
• Bulls Need To Reclaim $74.66: To get the current “bear flag” pattern to go away and get back to a neutral stance, bulls need to push silver back above the 200-period moving average.
• Momentum Indicators Are Improving: The RSI has bounced back to 50 which suggests that the selling pressure has finally run its course and the market is kind of neutral at the moment – we’ll have to see how today’s labor data affects things.

As the market digests today’s labour data, if silver can hold above $70.00 that will be a big test for its ability to recover.

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.

Silver is still more than 40 percent below its peak

4 hours ago

Save

USOIL Surges Past $112 as Strait of Hormuz Tensions Drive Massive Oil Rally in April 2026

20 hours ago

Save

Silver Prices Forecast: XAG/USD Consolidate at $73.00 Following Robust U.S. Jobs Data; What’s Next?

21 hours ago

Save