Silver Price Forecast Sparks Concerns
Jakarta, CNBC Indonesia - Silver prices (XAG/USD) have been trading within a tight consolidation range this week. The precious metal has struggled to break free from pressure following significant volatility in mid-month.
According to the latest global commodity exchange data, silver closed at $75.25 per troy ounce on Friday, 29 May 2026.
For the week, the commodity experienced high volatility, opening at $78.07 on Monday, 25 May, before easing to $76.94 on Tuesday, 26 May, plunging to $74.60 on Wednesday, 27 May, and recovering slightly to $75.63 on Thursday, 28 May.
Technically, the weekly price pattern reflects clear market momentum exhaustion after breaking out of an ascending channel. The 50-day SMA is acting as the nearest support level around $75.70 per troy ounce, with daily closing prices dynamically crossing this zone.
Meanwhile, the Relative Strength Index (RSI) has started to flatten in the bearish zone. This flattening indicates strong resistance among bearish investors, though short-term control has not fully shifted to buyers, creating a post-large correction consolidation pattern.
US Economic Data Dilemma and Rate Pressure
The easing of global market anxiety is the primary fundamental factor behind the commodity’s subdued movement. Financial markets have collectively reduced holdings in safe-haven assets as short-term concerns over global recession risks and Middle Eastern political tensions diminish.
As risk perception subsides, equity markets have strengthened and hit new record highs, automatically absorbing liquidity from precious metals markets.
Additional pressure on silver comes from US macroeconomic data complicating the Fed’s next moves. First-quarter US GDP growth was revised up to 1.4%, reflecting robust domestic economic activity.
On the other hand, PCE inflation, the Fed’s primary gauge, remains firmly above target with headline inflation at 3.8% and core PCE at 3.2%.
This combination of solid growth and stubborn inflation strengthens expectations of a prolonged high-interest-rate era. Such restrictive policy increases the opportunity cost for silver holders, as the metal yields no interest, thus capping potential price gains.
Technical Outlook and Key Short-Term Levels
In the upcoming trading period, silver is expected to remain trapped in a broad consolidation phase, with a trading range between $70.00 and $90.00 per troy ounce.
The nearest resistance level to trigger a reversal is the 20-day SMA at $77.92, followed by the strong psychological level at $78.00 per ounce.
Conversely, if selling pressure dominates and forces prices below the critical daily support level of $75.00, silver risks a deeper drop towards $73.09 and the monthly strong support area at $70.87.
Extreme downside risks could even see silver testing the 200-day SMA around $65.97 per troy ounce before the political cycle ahead of mid-term elections heats up global markets again.