May 2026 Silver Mid-Term Research Report: Weak Gold and Strong Silver Driven by the Supply Side and AI

## I. Core Drivers: A Paradigm Shift from Financial Hedging to High-Tech Essential Demand
For a long time, silver has been regarded as gold’s shadow, but in 2026 this has been completely shattered. With generative AI entering its first year of real-world applications, computing centers’ demand for high-performance electronic slurry is growing exponentially. Thanks to its unmatched conductivity, silver has become an indispensable material for chip packaging and server connectors. At the same time, the large-scale rollout of HJT heterojunction technology in the photovoltaic industry has led to global energy transition-driven silver consumption accounting for over 40% of total demand. Silver is no longer just “gold for the poor,” but strategic ammunition that high-tech industries cannot do without.

## II. Supply-Side Black Swan: The Dilemma of Mining Areas Under the Laws of Supply and Demand
The blowout in this round reflects the value law driven by supply and demand emphasized by Fu Haitang—namely, the fundamental reason behind price rises and falls lies in an imbalance in supply and demand. Peru, a global top producing region, has recently been hit by extreme power shortages and natural gas quota restrictions, causing multiple large mines to suspend operations and directly sever supply lines to the global market. The deeper crisis is that global silver inventories have been in net outflow for 6 consecutive years; as of May, COMEX inventories have fallen to historically extremely low levels. This extreme supply-demand contradiction has triggered the market’s “natural law.” Difficulties with physical delivery have caused prices to revert quickly to—and even exceed—their intrinsic value.

## III. Current Market Picture: A Game of Institutional Leverage Under a Logic of Certainty
Based on trading data, silver is currently in a zone of extremely high volatility. On May 14, spot silver closed at about 87.56 US dollars, and at one point during the session it surged to 89.17 US dollars. According to Fu Haitang’s trading philosophy, trading should be built on a certain fundamental logic rather than predicted chart patterns. At present, the gold-silver ratio has rapidly narrowed from the traditional 80:1 to around 40:1—an inevitable result of the eruption of fundamental contradictions. Meanwhile, open interest has hit a record high, meaning that under the support of this logic of certainty, the current price is being layered with a contest involving high-leverage funds, forming a fierce wave of liquidations.

## IV. Trading Levels: Technical Read on Key Resistance Levels and Support Ranges
Based on mid-May technical analysis:
1️⃣ **Core Resistance:** The first resistance is at the psychological level of 90.00 US dollars and recent wave targets. If a breakout is achieved effectively, the upside targets point to 95.00 to 98.40 US dollars.
2️⃣ **Core Support:** The first support is at 86.10 US dollars, and the strong buying order support zone is 83.70 to 84.20 US dollars.
3️⃣ **Bull-Bear Boundary Line:** 80.40 US dollars. As long as the price stays above this line, the medium-term long structure remains solid; if it breaks below, be on alert for the risk of a deep pullback to 75.30 US dollars.

## V. Trading Suggestions: Trend-Based Positioning Aligned with Favorable Timing and Conditions
For those trading short-term, it is recommended to look for opportunities to find stabilization around 86.10 US dollars, and absolutely avoid blindly chasing gains when pushing toward 90 US dollars. As Fu Haitang said, one should dare to increase positions after the logic of fundamentals is confirmed, but also stay calm when indicators are in overbought territory. For long-term positioning, as long as the supply-demand contradictions behind AI infrastructure and the energy transition are not resolved, the upward trend in silver will not end. However, given silver’s high-volatility “devil metal” characteristics, strictly control position sizes in line with changes in spot supply and demand as early as possible, and closely monitor official announcements from South America’s supply side to ensure that you align with the broader trend while avoiding shocks from short-term extreme fluctuations!$XAGUSD ‌#Gate广场五月交易分享