Silver Holds Near $87 Despite Hawkish Fed as Supply Deficit Bolsters Rally

Silver (XAGUSD) held firm around $87 on May 13, 2026, defying hawkish Federal Reserve signals thanks to a fourth consecutive year of physical supply deficits and robust industrial demand from solar panels and electronics. The metal surged past $81.50 resistance on May 11 with +6% gains to test $86-$87 two-month highs, fueled by US-Iran tensions and supply shortages including Peru's energy crisis risks, before dipping below $85 on May 12 amid risk-off mood and a firmer dollar. This follows a volatile 2026 with a $113/oz January peak and $77 February low after doubling in 2025; analysts eye $90+ targets with $83-$85 support.