Silver Prices Cause Panic in a Week, Here's the Outlook Ahead
Jakarta, CNBC Indonesia - Global silver prices remained under pressure throughout this week. XAG/USD ended Friday’s (17/7/2026) trading at US$55.90 per troy ounce, down US$3.94 or 6.58% compared to the previous week’s close of US$59.84.
Selling pressure was evident from the start of the week. Silver fell 3.67% on Monday to US$57.65, then briefly recovered 1.70% to US$58.63 on Tuesday.
That recovery was short-lived. The price corrected again by 1.46% to US$57.77 on Wednesday, then plunged 3.92% to US$55.51 on Thursday. In Friday’s trading, silver only managed a 0.71% rebound to US$55.90.
Throughout the week, the highest close was recorded at US$58.63 and the lowest at US$55.51. The trading range reached US$3.12 or about 5.3%, indicating that volatility remains high and selling pressure has not fully abated.
Rising geopolitical tensions in the Middle East have not been able to lift demand for silver as a safe-haven asset. Markets are instead more concerned about the conflict’s impact on energy supplies and global inflation.
The risk of shipping disruptions in the Strait of Hormuz and the Red Sea trade route has pushed oil prices back up. This condition could increase transport and production costs, while slowing the process of disinflation.
Rising inflation could prompt the US central bank to maintain high interest rates for longer. For silver, this scenario tends to be negative because the precious metal does not offer yields like bonds.
US inflation data has actually begun to show softer signals. Headline inflation for June fell 0.4% month-on-month, while annual core inflation eased to 2.6%.
However, the annual headline inflation rate remains at 3.5% and pressure from energy prices is still high. This reduces the urgency for further rate hikes in the near term, but is not yet sufficient to confirm that monetary policy will be loosened soon.
From a technical perspective, the XAG/USD price structure continues to form a pattern of lower highs and lower lows.
After closing at US$62.08 on 6 July, silver formed successive lower peaks around US$60.01, US$59.99, and most recently US$58.63. At the same time, the price has broken through the US$57.65 area and declined towards US$55.51.
Bearish pressure is also evident from the moving averages. The five-day average closing price stands at US$57.09, lower than the 10-day average of US$58.57.
Friday’s closing price of US$55.90 is also below both averages. As long as this condition persists, any price increase is more likely to be a technical rebound rather than the start of a trend reversal.
For the trading week of 20-24 July 2026, XAG/USD is projected to move bearish-sideways within a range of US$54.40-US$58.63 per troy ounce.
The US$55.50 area serves as the nearest support and a directional decision level. As long as the price holds above it, silver still has a chance to consolidate and rebound towards US$57.65.
However, a daily close below US$55.50 would strengthen selling pressure and open the path towards US$54.40. If that level is also breached, the next downside target lies around US$53.44.
On the upside, US$57.65 is the first resistance, followed by US$58.63. A trend reversal would only be confirmed if XAG/USD manages to close above US$58.63, with a further target at US$59.84-US$60.01.
The bias for silver remains negative as long as the price is below US$57.65. The direction of oil prices, the US dollar, bond yields, and developments in the Middle East conflict will be the main determinants of XAG/USD’s movement throughout the coming week.