On Wednesday (October 21), spot silver was quoted at $57.477 per ounce, down 0.86%. Yesterday, some positive news emerged from the US-Iran negotiations, causing a significant surge in silver prices. According to Al Jazeera, Qatar and Pakistan submitted a "compromise proposal" that balanced the demands of both the US and Iran. The Pakistani Army Chief of Staff mediated this proposal, which had already been accepted by both sides. This new proposal also partially addressed Iran's demand to unfreeze its frozen funds. The market interpreted this proposal as a substantial step forward in the negotiations, rapidly easing geopolitical tensions and driving a short-term rise in commodities and precious metals. Initially, the market reacted enthusiastically, increasingly expecting an agreement to be reached soon. However, a diplomat involved in the US-Iran negotiations stated that negotiations were still ongoing and reports of an imminent agreement were untrue, causing silver prices to reverse. This contradictory news directly resulted in a typical "tug-of-war" market for silver, with short-term traders facing significant volatility risks during rapid price fluctuations. Despite this, the continuous emergence of positive news, coupled with the approaching US midterm elections, has given the market a glimmer of hope. Trump's camp may hope to secure at least a short-term agreement to lower energy prices and US Treasury yields, while simultaneously boosting the stock market. Under the pressure of the election cycle, short-term geopolitical easing measures have strong political appeal, potentially alleviating price pressures faced by voters. If negotiations achieve a breakthrough, easing concerns about inflation and interest rate hikes, silver prices are expected to rise in the short term. While de-escalation of geopolitical conflict will weaken safe-haven buying of gold and silver, the expectation of interest rate cuts due to declining inflation expectations will support precious metals. Another potential catalyst is the US PMI preliminary reading to be released this Friday. Given current market concerns about economic growth, if the data falls short of expectations, it will further deepen economic panic, pushing down long-term US Treasury yields, which is likely to be beneficial for silver in the short term. Conversely, if the data is strong, market concerns about growth will ease, and real yields may rise, thus putting downward pressure on silver prices. Real yields have always been a core anchor indicator for silver's medium-term trend; good or bad data directly changes the market's pricing of US Treasury yields. Technical Analysis From the daily chart, the price encountered resistance after testing the trend line, prompting sellers to enter the market and bet on a further decline to new lows. It is expected that sellers will continue to operate short positions based on this trend line, placing stop-loss orders above the trend line to push the price further down. This trend line is currently the key level separating bullish and bearish sentiment on the daily chart and a crucial defensive resistance level for the bears. The bulls need to effectively break through this trend line to open up a potential upward channel, targeting the next retracement trend line around the $62.00 level. Only by firmly establishing a foothold above the trend line can the recent bearish daily chart structure be reversed. On the 4-hour chart, an upward trend line defines the recent pullback range. Bulls can use this trend line to establish long positions, placing stop-loss orders below the trend line, aiming for an upward move towards the next key trend line, with a target around $62.00. Conversely, bears should wait for a downward breakout to add to their short positions, pushing the price to new lows, with the first target at $54.75. The 4-hour timeframe is better suited for capturing short-term swing trading; whether the trend line is broken or not is a crucial signal for swing trading.