Silver Price Forecast: Silver/USD Meets Resistance Near $70.00 as Upside Momentum Fades

Silver extended its pullback from a two-month high on Tuesday, falling for a second straight session, with the $70.00 psychological level presenting clear resistance. At press time, spot silver was trading near $67.89 per ounce, after dipping to the mid-$67.00 range during European trading hours. Market sentiment has turned cautious as investors assess whether the recent correction has further room to run.

**Short-Term Momentum Weakens, but Oversold Signals Emerge**

On the technical front, silver's short-term momentum has clearly faded. The Relative Strength Index (RSI) is hovering near 40, approaching oversold territory, which suggests the downside pressure may be losing steam. Meanwhile, the MACD indicator remains in a bullish configuration, with the histogram still in positive territory, leading some analysts to see potential for a short-term bounce. However, price remains below both the 5-day and 20-day moving averages, and the resistance from the short-term moving average system has yet to be cleared, leaving traders wary of further downside risks.

**Medium-Term Support Holds, Industrial Demand Provides a Floor**

Despite the near-term weakness, silver's medium-term structure remains intact. The price is still holding above the key support near the 200-day moving average, a level widely viewed as a critical line of defense for the ongoing recovery. On the fundamental side, industrial demand from solar panels, electronics, and green-energy infrastructure remains solid, while the structural supply deficit continues to provide medium- to long-term support for silver prices. Warren Patterson, head of commodities strategy at ING, noted that silver's market is much smaller than gold's, and its dual role as both an industrial and investment metal naturally amplifies price volatility.

**Sentiment Diverges, Chasing Highs Requires Caution**

Notably, market opinions on silver's outlook are increasingly divided. On one hand, safe-haven demand and speculative capital flows have driven silver sharply higher so far this year. On the other hand, some strategists warn that trading volumes in silver ETFs and options have surged to record highs, a pattern reminiscent of typical "meme asset" behavior. Should market enthusiasm cool, prices could face a sharp correction. Morgan Stanley's January 2026 research report also indicated that silver ETF holdings have been declining since the start of the year, a shift that has yet to be fully reflected in prices. Given the combination of fading short-term momentum and intact medium-term support, investors are advised to remain cautious and avoid chasing rallies near the $70.00 level.