Silver Pulls Back Below $70 Amid Strong Dollar and Rising Yields
Silver prices retreated below $70 per ounce last week after failing to hold above that level, marking a significant pullback from its recent gains. The metal had surged by over 17% in August, but it struggled to maintain momentum as the US dollar strengthened and Treasury yields rose.
The technical setup for silver remains bullish above deeper support levels, with upside targets including $74.12, $81.42, $89.43, and ultimately $102.22. However, the next correction will provide a crucial test of whether these targets are realistic or just projections from a count that fails.
J.P. Morgan Global Research is more cautious in its forecast, predicting silver to reach only $63 an ounce by the fourth quarter of 2026 due to easing physical tightness and potential rate headwinds. The Silver Institute's estimated 40.3 million-ounce deficit for 2026 provides fundamental support, driven by demand from electronics, AI infrastructure, and power-grid investment.