After a sharp decline, the price of silver rebounded this week

Silver prices fell sharply in June

Silver prices were weak in the early stages of July, but stopped falling and rose this week. According to the Commodity Market Analysis System of Shengyi Society, the silver market price on July 22, 2026 was 14588.67 yuan/kg, an increase of 3.76% compared to the spot price of 14059.67 yuan/kg at the beginning of this month (7.1); Compared to last Friday’s low (7.17) spot price of 13450 yuan/kg, it has increased by 8.46%.
The reasons for the strong operation of silver prices this week are as follows:
1. Weakening employment and manufacturing data in the United States, increasing market expectations of interest rate cuts, and lower US dollar and US Treasury yields are favorable for precious metals;
2. In the early stage, the silver price was deeply oversold, and a large number of short positions were concentrated and closed, resulting in a rapid short-term rise in the market;
3. The geopolitical conflicts in the Middle East are recurring, and safe haven funds are pouring into silver;
4. The global silver supply and demand gap continues, with demand from the photovoltaic and new energy electronics industries providing bottom support;
5. The gold silver ratio is too high, the valuation of silver is too low, and arbitrage funds enter to make up for the increase.
The recovery market after the sharp decline
The current rise in silver belongs to the recovery market after a sharp decline. The marginal cooling of the expectation of the Federal Reserve raising interest rates is currently the main macroeconomic logic. Federal Reserve officials acknowledge the marginal easing of inflation and have not released a strong signal of interest rate hikes, dispelling the extremely pessimistic expectation of “sustained high interest rates” in the market, and loosening the strongest bearish logic that previously suppressed silver.
After the silver price fell to a low level, a large number of speculative bears concentrated in the early stage to bet on the decline. When it hit a new low for the year, under the dual news of easing in the Middle East and weak data, bears concentrated their positions and left. Drive the silver price to stop falling and recover.
Future forecast
At present, the price trend of precious metals is more inclined towards a rebound rather than a trend reversal. Technically, it is still in a medium-term downward trend, and this time it is only for oversold repair. It has not yet broken through the key moving average pressure, and the sustainability still needs to observe the follow-up data of US inflation and employment. It is expected that the short-term prices of precious metals will continue to operate strongly, but the upward space is limited, and the future market will mainly experience strong fluctuations.