AI Spending Could Support Long-Term Silver DemandAs discussed above, technology stocks continue to drop significantly, which is pushing the major stock indexes down.
This is creating risk for silver prices in the short term as the price continues to drop below key support levels.
Therefore, the recent correction in silver prices may be an attractive opportunity for long-term investors.
Silver Price Forecast: Key Support Levels and Recovery TargetsMonthly Chart: Silver Tests Long-Term Support at $45–$50From a technical perspective, the silver price produced a high in the $120 area in January 2026, which triggered a strong drop.
In October, the price dropped toward the key support area that I have been discussing during the past few months.
The high energy prices may likely impact core PCE inflation within the few weeks. This suggests that core PCE inflation may go even higher in next few weeks.
AI Spending Could Support Long-Term Silver Demand
As discussed above, technology stocks continue to drop significantly, which is pushing the major stock indexes down. This is creating risk for silver prices in the short term as the price continues to drop below key support levels.
However, this breakdown does not change the long-term demand for silver. Silver is used heavily in computer hardware and power systems. Since companies continue to spend heavily on AI, this will likely attract new buyers at lower levels, which may push silver prices higher again. Therefore, the recent correction in silver prices may be an attractive opportunity for long-term investors.
Silver Price Forecast: Key Support Levels and Recovery Targets
Monthly Chart: Silver Tests Long-Term Support at $45–$50
From a technical perspective, the silver price produced a high in the $120 area in January 2026, which triggered a strong drop. The formation of candles with long shadows in January 2026 and then in May 2026 suggested that prices would likely drop towards lower levels.
In October, the price dropped toward the key support area that I have been discussing during the past few months. This area lies between $45 and $50. The $50 region is defined by the April 2011 highs, while the $45 level is defined by the August 2011 high. Both levels have been the key resistances historically.
