Silver's rally accelerated on Thursday, approaching the psychological level of $50.
2025-10-09 19:54:09
Silver prices initially fluctuated during the European trading session on Thursday (October 9th) before rising sharply. Despite a strong dollar, precious metals trading remained strong overall. Spot silver prices closed at $49.635 per ounce, up 1.62%, approaching the psychologically important $50.00 mark.
Precious metals continued to find buying support on Thursday, as political uncertainty in France and Japan persisted, while the U.S. government shutdown entered its eighth day with no resolution in sight.
Earlier in the day, New York Fed President John Williams expressed support for further rate cuts. Market focus now turns to Fed Chairman Jerome Powell and Governor Michelle Bowman, who are expected to speak at a banking event in Washington later in the day.
Silver prices are approaching all-time highs reached in 2011 and 1980. Silver hasn't broken through the 50.00 mark in over 45 years. Just a month ago, silver prices barely surpassed 41.0000, a remarkable 20% gain in less than a month.
However, for day traders who have never traded silver before, there are two key facts to understand before jumping in. First, silver mine production is relatively easy to increase. Second, geologists have proven that underground silver reserves are far greater than those of other precious metals. In other words, while silver's supply is limited, its reserves are incomparable to those of gold and other precious metals.
50.00 key level and price pullback
Despite this, the rapid upward trend in silver prices is difficult to halt. Traders who have capitalized on the upward trend and employed a reasonable risk-taking strategy have likely already reaped substantial profits. Yesterday's record high in silver prices was directly linked to a widespread speculative buying spree across multiple precious metals. Currently, the $50.00 mark for silver has become a hotly debated target among commodity traders, with widespread market discussion about whether this level can be broken through.
However, selling pressure began to emerge yesterday when silver prices hit 49.50 and above, and the short-term downward trend remains strong in early trading today. Profit-taking is likely to occur in the market, especially if traders are satisfied with the profits made in the past few weeks, but market sentiment can also reverse quickly.
Price Fluctuations and Speculation
The current volatility in the silver market is attractive to traders seeking quick profits. However, it should be noted that silver has always been a commodity with high speculative risk, as its price is prone to sharp reversals.
The current silver market appears to be overly optimistic, and day traders considering shorting silver near current highs must exercise caution when placing orders. Going against a strong buying trend could result in significant financial losses.
Technical analysis: Psychological level of $50.00 attracts bulls
(Silver 4-hour chart source: Yihuitong)
Silver continues to rise. The pair has risen by more than 20% in the past three weeks and looks a bit overbought, but the fundamentals remain supportive and there are no signs of a pullback except for the bearish divergence in the 4-hour relative strength indicator (RSI).
Silver rebounded from $48.40 in early trading Thursday and has reached the $49.70 area. Bulls are targeting the $50.00 mark, which is the intersection of the upper edge of the rising channel since the mid-September low. Further above, the 161.8% Fibonacci extension level of the early October rally is at $50.70.
Looking down, initial support is seen at Wednesday’s low of $48.40, followed by the confluence of trend line support and the October 7 low at $47.50, and the $45.90-$46.00 area, where the September 30 and October 2 lows are located.
Precious metals continued to find buying support on Thursday, as political uncertainty in France and Japan persisted, while the U.S. government shutdown entered its eighth day with no resolution in sight.
Earlier in the day, New York Fed President John Williams expressed support for further rate cuts. Market focus now turns to Fed Chairman Jerome Powell and Governor Michelle Bowman, who are expected to speak at a banking event in Washington later in the day.
Silver prices are approaching all-time highs reached in 2011 and 1980. Silver hasn't broken through the 50.00 mark in over 45 years. Just a month ago, silver prices barely surpassed 41.0000, a remarkable 20% gain in less than a month.
However, for day traders who have never traded silver before, there are two key facts to understand before jumping in. First, silver mine production is relatively easy to increase. Second, geologists have proven that underground silver reserves are far greater than those of other precious metals. In other words, while silver's supply is limited, its reserves are incomparable to those of gold and other precious metals.
50.00 key level and price pullback
Despite this, the rapid upward trend in silver prices is difficult to halt. Traders who have capitalized on the upward trend and employed a reasonable risk-taking strategy have likely already reaped substantial profits. Yesterday's record high in silver prices was directly linked to a widespread speculative buying spree across multiple precious metals. Currently, the $50.00 mark for silver has become a hotly debated target among commodity traders, with widespread market discussion about whether this level can be broken through.
However, selling pressure began to emerge yesterday when silver prices hit 49.50 and above, and the short-term downward trend remains strong in early trading today. Profit-taking is likely to occur in the market, especially if traders are satisfied with the profits made in the past few weeks, but market sentiment can also reverse quickly.
Price Fluctuations and Speculation
The current volatility in the silver market is attractive to traders seeking quick profits. However, it should be noted that silver has always been a commodity with high speculative risk, as its price is prone to sharp reversals.
The current silver market appears to be overly optimistic, and day traders considering shorting silver near current highs must exercise caution when placing orders. Going against a strong buying trend could result in significant financial losses.
Technical analysis: Psychological level of $50.00 attracts bulls
(Silver 4-hour chart source: Yihuitong)
Silver continues to rise. The pair has risen by more than 20% in the past three weeks and looks a bit overbought, but the fundamentals remain supportive and there are no signs of a pullback except for the bearish divergence in the 4-hour relative strength indicator (RSI).
Silver rebounded from $48.40 in early trading Thursday and has reached the $49.70 area. Bulls are targeting the $50.00 mark, which is the intersection of the upper edge of the rising channel since the mid-September low. Further above, the 161.8% Fibonacci extension level of the early October rally is at $50.70.
Looking down, initial support is seen at Wednesday’s low of $48.40, followed by the confluence of trend line support and the October 7 low at $47.50, and the $45.90-$46.00 area, where the September 30 and October 2 lows are located.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
