Silver Stalls at Critical Support Level Amid Volatility
Silver prices have been volatile in recent months, and investors are wondering if the metal can hold above its critical support level of $50.36 per ounce.
The metal has been in a bearish trend since reaching an all-time high of $121.785 per ounce on January 29, 2026, but the long-term bullish trend remains intact.
Silver demand is increasing due to its electrical conductivity, making it a critical metal for artificial intelligence hardware, data center construction, and EV electronics. The Silver Institute's World Silver Survey 2026 reported that 2026 is the sixth consecutive year of a deficit, where silver demand is higher than supply.
The price action since the January high shows that while the silver market remains in a deficit, it can also plunge on long liquidation when it runs out of upward price momentum. The risk-off conditions in markets across all asset classes could drive silver prices substantially lower.