Silver Poised for Surge, Investors Urged to Stay Vigilant
Silver prices in global markets showed signs of recovery last weekend. According to Refinitiv data, spot silver (XAG/USD) traded at $75.61 per troy ounce at 7:15 WIB on Monday, June 1, 2026, up 0.48% from Friday’s trading. This positions the industrial metal to break out of support levels and test key technical resistance boundaries. This dynamic unfolds amid conflicting forces between global macroeconomic policies and structural physical supply deficits.
Market Dynamics and Macroeconomic Influences
Fundamentally, silver’s movement correlates closely with gold’s consolidation trend. US core inflation remaining at 3.8% in April has erased market expectations of near-term Federal Reserve rate cuts. Tight monetary policy has boosted real yields, constraining gains for non-yielding assets like silver. Meanwhile, an extension of the US-Iran ceasefire has eased market panic, reducing geopolitical hedging demand. Market focus now turns to US labour data due on June 6, with unemployment expected to hold at 4.2% and non-farm payrolls adding 120,000-150,000 jobs. The economic indicator is expected to trigger significant volatility, influencing future central bank policy directions.
Structural Deficit and Industrial Sentiment
Despite facing similar monetary pressures as gold, silver benefits from more aggressive industrial demand. Market institutions confirm that 2026 will mark the sixth consecutive year of significant structural supply deficits in the global silver market. This fundamental scarcity is driven by surging demand from the green energy transition sector, including accelerated production of photovoltaic solar panels, electric vehicle component manufacturing, and expansion of hardware infrastructure for artificial intelligence. Chronic supply deficits have led Wall Street analysts to maintain a long-term silver price target of $81.00 this year.
Technical Analysis and Critical Price Levels
Technically, a close above $75.25 has provided a new directional perspective. Previously, silver was trapped in a descending channel after rejection at resistance zones of $76.35-$77.02. However, weekend movements saw silver break above the minor resistance level of $74.99. Prices are now testing the trendline barrier at $75.39. The 14-period RSI is neutral at 49-54, indicating no overbought or oversold signals and allowing flexibility in direction. For next week’s trading strategy, $75.39 is a critical equilibrium level. A close above this level could open opportunities for further recovery towards the major resistance at $76.35. Conversely, if prices stall and face rejection, silver may retest nearest support at $74.60 with a further downside target of $73.47. Investors are advised to closely monitor early-week price gap openings for confirmation of the next trend direction.