Silver at $76.12 Holds Steady as Deficit Deepens – Industrial Demand Shines?

Quick overview

Spot silver (XAG/USD) is hovering around $76.12 an ounce on May 19, 2026, down 0.18% as the white metal trades in a relatively stable state, buoyed by a positive macro outlook.

Major Themes

1. Supply deficit: Silver is on course for a sixth year in a row of deficit in 2026, with projected losses of 46.3 million ounces (Silver Institute). Stocks above ground have declined 762m ounces from 2021, with inventories now critically low and supporting scarcity.
2. Industrial demand: Demand from solar panels, cars, electronics, 5G and AI data centres continues to be a major positive for silver prices. This is further supported by China’s buying activity keeping inventories at low levels.

Silver’s dual role as both a monetary metal as well as an industrial one makes the white metal an attractive play for speculators at the moment. The commodity is in the mix, with investors eyeing a shift in demand towards physical gold and silver in an improving manufacturing environment and with more focus on long-term green energy themes.

Silver is less attractive now with inflation cooling and energy prices dropping with the current truce between the US and Iran.

Inflation data released this week in the US surprised on the upside, tempering expectations of the Federal Reserve cutting rates. This has weighed on price in the near-term, as the commodity trades based on fundamental metrics at the moment.

Silver (XAG/USD_ Technical analysis

Silver has retested the lower blue descending channel support from the all-time high of $89.43 on the 4H chart. It has previously found support at the $83.45-86.10 area. The 0.236 Fib (77.59) confluence holds, as does red MA (76.12-77.59), with purple MA trailing near 79.85.

Lower highs are present inside a parallel declining channel.

The impulse up (green) broke the 0.618 Fib (83.51) before this sideways pullback, which forms the 0.236-0.382 Fib area of the last leg. The RSI is extremely oversold at 31-34 with a bullish divergence during the dip, confirming seller exhaustion and high rebound probability before overbought, with a 77.59-79.85 level of resistance and then 81.68-83.45 area of resistance following that.

Resistance: 77.59 → 79.85 → 81.68. Support: 75.98 → 73.93.

Idea: Long silver above 76.50, with target of 77.59-79.85, stop at 75.90. Silver prices remain vulnerable to changes in US macro, industrial demand, and wider risk sentiment. Rate cut expectations have fallen in the past couple of days, but the commodity should have a generally positive medium to long-term profile thanks to chronic supply issues and its growing use as part of the green energy transition.

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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