Silver Price Forecast: Oil Fuels Inflation Fears Despite Softer Jobs
By Muhammad Umair | Updated: Oct 07, 2026
Key Points
- Inflation risks continue to limit silver’s recovery.
- Silver could fall towards $50 if it breaks below $55–$56.
- A breakout above $72 could open the way towards $100.
Market Overview
As of October 7, 2026, Brent Oil is trading at $104.467, reflecting a 0.94% increase. The technical analysis from the previous session indicates a support level at $102.167, a pivot at $104.307, and a resistance level at $105.637.
Current Silver Market Conditions
Silver (XAG) is currently under pressure due to high energy prices and a strong US dollar, which are limiting its recovery potential. The recent activity in US factories suggests a positive industrial outlook; however, slower hiring and wage growth may provide the Federal Reserve with more flexibility to pause interest rate hikes. Despite this, inflation risks are causing traders to remain cautious ahead of the upcoming Federal Reserve meeting on October 27-28.
Technical Outlook
Silver is approaching the critical support zone of $55-$56, with a weak price structure in the short term. Analysts believe that the broader range of $50-$55 is crucial for the market. Conversely, if silver manages to break above the $72 mark, it could signal a stronger recovery, potentially leading towards the $100 level.