Silver rebounded after a sharp drop, and will be treated as a short-term adjustment
2025-10-22 14:22:05
Silver rebounded from a two-week low to around $49 in Asian trading on Wednesday, having fallen nearly 12% since last Friday on improving global trade expectations.
The market is full of expectations for the upcoming meeting between US President Trump and leaders of major Asian countries, but Trump also warned that the meeting may not be able to take place, adding to market uncertainty.
Institutional view: According to market research, global trade uncertainty usually increases demand for safe-haven assets such as silver, and short-term fluctuations are obvious.
On the policy front, the Federal Reserve is almost certain to cut interest rates next week, which is positive for non-yielding assets such as silver. Before that, investors will focus on the delayed release of the US Consumer Price Index (CPI) data for September to assess the pace of rate cuts and inflation trends.
Silver prices have retreated from last Friday's all-time high of $54.50, leaving the near-term trend uncertain. The 20-day exponential moving average (EMA) is around $49.04, and prices have struggled to reclaim it, suggesting short-term bullish momentum is stalling.
The 14-day relative strength index (RSI) is below 60, indicating that the upward momentum has temporarily stopped. The support level below is the recent low of $47.53, the low of $45.90 on October 2, and the low of $43.78 on September 25. If these support levels are broken, silver may come under further pressure.
The upper resistance is the October 21 high of $52.71 and the historical high of $54.50. A breakthrough will rekindle the bullish momentum.
At the 4-hour level, silver is in a weak consolidation pattern, with prices fluctuating in the range of $48.50-49.50. The short-term moving average is slightly downward, the MACD column is shrinking, and the RSI is around 50, indicating that short-term adjustments are still continuing. The key focus is on the directional signals brought by the breakthrough of the range boundary.
Editor's opinion:
Silver rebounded from its lows in the short term, but bullish momentum has been hampered, with technical indicators suggesting a weak consolidation. Policy-wise, expectations of a Fed rate cut provide medium-term support for silver, while trade uncertainty could still trigger safe-haven inflows. Focus on the firming of support at $47.53 and potential rebound opportunities above resistance at $52.71.
The market is full of expectations for the upcoming meeting between US President Trump and leaders of major Asian countries, but Trump also warned that the meeting may not be able to take place, adding to market uncertainty.
Institutional view: According to market research, global trade uncertainty usually increases demand for safe-haven assets such as silver, and short-term fluctuations are obvious.On the policy front, the Federal Reserve is almost certain to cut interest rates next week, which is positive for non-yielding assets such as silver. Before that, investors will focus on the delayed release of the US Consumer Price Index (CPI) data for September to assess the pace of rate cuts and inflation trends.
Silver prices have retreated from last Friday's all-time high of $54.50, leaving the near-term trend uncertain. The 20-day exponential moving average (EMA) is around $49.04, and prices have struggled to reclaim it, suggesting short-term bullish momentum is stalling.
The 14-day relative strength index (RSI) is below 60, indicating that the upward momentum has temporarily stopped. The support level below is the recent low of $47.53, the low of $45.90 on October 2, and the low of $43.78 on September 25. If these support levels are broken, silver may come under further pressure.
The upper resistance is the October 21 high of $52.71 and the historical high of $54.50. A breakthrough will rekindle the bullish momentum.
At the 4-hour level, silver is in a weak consolidation pattern, with prices fluctuating in the range of $48.50-49.50. The short-term moving average is slightly downward, the MACD column is shrinking, and the RSI is around 50, indicating that short-term adjustments are still continuing. The key focus is on the directional signals brought by the breakthrough of the range boundary.
Editor's opinion:
Silver rebounded from its lows in the short term, but bullish momentum has been hampered, with technical indicators suggesting a weak consolidation. Policy-wise, expectations of a Fed rate cut provide medium-term support for silver, while trade uncertainty could still trigger safe-haven inflows. Focus on the firming of support at $47.53 and potential rebound opportunities above resistance at $52.71.
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