Silver 2026 Forecast: Breakout Momentum Faces First Major Test

Author: Bruce Powers

Updated: December 29, 2025

Key Highlights

• Silver experienced a remarkable surge of over 120% in 2025, reaching a peak of $64.67.
• The price movement confirmed a long-term breakout that began earlier in the year.
• Silver's performance outpaced most other assets, establishing a strong bullish trend.
• Current resistance levels are identified between $65.53 and $65.98, with potential for profit-taking or consolidation in early 2026.

2025 Performance and Breakout Confirmation

In 2025, silver posted one of its strongest annual performances, climbing as much as $35.77 (123.8%) to a December high of $64.67. The breakout above the 2011 high of $49.81 in early October solidified the long-term bullish trend. The metal's price action demonstrated a consistent pattern of higher monthly highs and lows, indicating strong buying pressure.

Momentum Signals and Resistance Ahead

The recent price increase has brought silver into potentially overextended territory. While the weekly Relative Strength Index (RSI) does not show clear bearish divergence, it is approaching overbought levels. The price is nearing a significant resistance zone defined by various technical extensions, and a breakout above $65.98 could lead to further gains, while caution is advised until then.

Support Structure and Pullback Scenarios

Should profit-taking occur, there are multiple layers of support to consider. The immediate support level is the December higher low at $56.19. A breach of this level could indicate a weakening trend. Additional support levels include the 10-week moving average at $52.52 and the prior breakout level near $49.81. As long as prices remain above these support zones, the bullish outlook is likely to persist.

Fundamental Drivers into 2026

Looking ahead to 2026, the fundamentals for silver remain strong. Analysts project another structural market deficit driven by high industrial demand from sectors such as solar energy, electric vehicles, and electronics. Despite some efforts to reduce per-unit usage, mine supply remains constrained, which is expected to keep physical inventories tight. Forecasts suggest average prices in the $55–$65 range for 2026, with potential for prices to exceed $70 if investment flows increase alongside persistent deficits.

Conclusion

In summary, silver enters 2026 with strong momentum from 2025, supported by a confirmed multi-year bullish framework. While near-term overextension and resistance may lead to some consolidation or pullback, the underlying support and robust fundamentals suggest that any weakness will likely attract buyers, aiming for a breakout above the $65–$66 zone.