Silver price forecast: what next as the sell-off stalls?

Silver price extended last week’s losses to a three-month low earlier on Monday; dropping below the crucial zone of $70. Heightened inflation concerns and increasing bets over a hawkish Fed continue to weigh on the white metal. However, the building pressure may soon yield a strong rebound. 

Silver price plunges past crucial support zone

After recording its third consecutive week of losses, silver price has begun the new week on its back foot. On the one hand, the bulls still have an opportunity to regain control amid the ongoing geopolitical tensions in the Middle East. However, its recent selloff is a sign that heightened volatility continues to define the path to finding its short-term footing. 

At the start of the US-Iran war about five weeks ago, silver price hit a one-month high at $96.43. It has since declined by about 35% to trade at its lowest level since mid-December 2025. At the time of writing, the white metal was at $62.41. 

Even with the decline, XAG price has a chance to rebound significantly. In past months, the white metal has made sharp increases and rebounds. For instance, the period between mid-November 2025 and mid-January 2026 saw it rally by close to 150% as investors increasingly preferred it to gold as a safe-haven and for investment. Besides, just before the US-Iran war, it has rebounded by about 50% in one month compared to gold’s 22%. 

At the moment, heightened inflation concerns are weighing on silver price and the broader class of precious metals. As Brent crude oil price remains in the triple-digit zone, investors are increasingly betting on an interest rate hike by the Federal Reserve and other major central banks. Similar to the Fed, the ECB, BOJ, and BOE left their rates unchanged in the past week while signaling that they were ready to tighten their monetary policies should inflation pressures persist. 

Nonetheless, a silver price breakout is likely in the short-to-medium term. To start with, long-term investors are set to maintain their positions as they seek safety of their resources amid the persistent geopolitical tensions and economic uncertainties. 

Besides, earlier in the year, the Silver Institute forecasted that 2026 would mark silver market’s sixth consecutive year of deficit. While its industrial demand may weaken, its investment demand is expected to surplus supply. 

Silver price technical analysis

Silver price chart | Source: TradingView

Earlier on Monday, silver price dropped to its lowest level in over three months amid heightened inflation concerns. However, it has erased some of those losses; moving back above the support level of $65.50 and off the oversold territory at an RSI of 33.  

While the selling pressure continues to weigh on the white metal, a strong rebound is likely. Notably, the short-term 25-day EMA and medium-term 50-day MA are converging around the crucial zone of $80. If the short-term MA remains above the medium-term one, the entry of new buyers is set to return silver price above the support level of $70. That gives the bulls a chance for a sharp rebound. At that level, the next target will be at the support-turn-resistance zone of $75.85.