Silver loses momentum on Monday after failed attempt to breach resistance

Silver prices are now showing signs of uncertainty following a brisk corrective rally at the end of last week. An unclear de-escalation outlook in the Middle East remains the key factor behind the scenes. However, this catalyst is no longer providing as much support for the precious metal as it once did. The market’s positive response to diplomatic efforts was short-lived. If geopolitical tensions flare up again, oil prices could surge once more, driving inflation higher.

The Federal Reserve’s (Fed) hawkish stance is another burden on silver. Last week, the US central bank kept interest rates unchanged and suggested that monetary easing is unlikely this year. The Consumer Price Index (CPI) report for March revealed a 0.7% rise—the highest figure since June 2022. Such an increase provides one more argument in favor of tight policy. High interest rates make it less profitable to hold non-yielding assets like silver.

Industrial demand—traditionally a reliable pillar of support for the metal—is now looking shaky. April’s Manufacturing Purchasing Managers' Index (PMI) in the US came in below expectations, signaling weaker production. This undermines a key fundamental driver of silver consumption: the needs of the real sector, including solar panel makers, who, according to the latest data, are cutting back on their metal purchases.

As for the technical setup, quotes have recently attempted to recover after touching a local bottom. However, on May 4, 2026, they ran into resistance at the 38.2% Fibonacci level—a serious hurdle that derailed silver’s two-session rally and left the market clouded with uncertainty. This picture is confirmed by trading volumes, which remain moderately low compared to the peaks seen during the previous decline. Thus, we can conclude that buying momentum is not strong enough.

Consider the following trading strategy:

Sell silver at the current price ($75.55). Place Take profit at $73.00. Set Stop loss at $77.30.

This forecast is valid from May 4 till May 11, 2026.