Silver Forecast: Bulls on Defense After Failed Breakout
Silver pulled back after a strong rally, as recent price action showed signs of slowing down. Although the fundamentals remain supported by supply constraints, momentum has weakened following a failed attempt to rise further. Short-term consolidation may be ahead, even though the longer-term outlook is still bullish.
Silver had one of the most explosive rallies in modern precious metals history last year, a 147% surge in 2025 that carried through and pushed silver to an all-time high of $121 earlier this year. Then it broke. Silver is now trading at $74, a ~32% drawdown from the peak, and the chart just delivered invalidation to the most recent breakout attempt. The fundamental case for silver is still intact. The supply deficit is estimated to be at 46.3 million ounces for 2026, marking the sixth consecutive annual deficit. Industrial demand keeps grinding higher, with solar panel manufacturing alone consuming roughly 16-20% of the annual global silver supply. Industrial demand is competing with bullion banks like J.P. Morgan, which has been buying and averaging $81/oz across 2026. None of that has changed with the selloff. What has changed is that the technical picture shows confidence is fading in the near term, and it looks like there may be more buying opportunities for the bullion banks ahead of us.