Published: October 23rd, 2025
As demand for safe-haven assets increased amid growing international trade and geopolitical unrest, silver recovered some of its earlier losses and formed a base before making an intraday buy..
Although President Donald Trump subsequently confirmed intentions to get acquainted with Chinese President Xi Jinping, reports suggested that the US is considering export restrictions on China concerning software manufactured in the US.
In an attempt to pressure Moscow into negotiating an end to the conflict in Ukraine, the administration of Donald Trump simultaneously placed Russia's two largest oil companies, Rosneft and Lukoil, on a blacklist.
Despite the recovery, widespread profit-taking has kept silver close to 10% under the record highs set last week.
Can the price move even higher? Let's see the complete outlook from the XAGUSD market analysis:
On the daily silver chart, the ongoing price action remains bullish, even after a 10% decline from the all-time high of 54.44. As long as the existing market trend stays strong, investors might expect a decent bullish continuation opportunity in this instrument.
On the higher timeframe, strong buying pressure is evident, as the monthly candle has been rising for six consecutive months. However, the current price is overextended from the monthly opening, and a notable correction is visible in the weekly timeframe. A valid bearish engulfing candle pattern could signal a potential downside recovery, even though the broader market trend remains bullish.
In terms of volume, a considerable correction seems to be pending since no significant high-volume selling pressure has been observed at the top. This suggests a minor pullback may occur as a mean-reversion. Investors should closely monitor how the price reacts near the dynamic support area.
In the main price chart, the 50-day EMA is below the current price and has a bullish slope, indicating strong buying pressure from medium-term traders. Moreover, the 50-day EMA has crossed above the high-volume line, signalling robust bullish momentum. However, a minor bearish correction may still occur as a mean reversion.
Currently, the 47.32 level acts as the immediate support, as the market continues to trade bullish after testing this zone. The Relative Strength Index (RSI) also shows signs of recovery, with the current line hovering around the neutral 50.00 level after retreating from the overbought 70.00 area.
Based on this outlook, the primary focus should be on identifying a possible downside correction if the price fails to hold above the 47.32 support level. On the bearish side, the next immediate support lies at 45.00, aligning with the 50-day EMA. Below this, the secondary support is at 43.62, followed by the 40.00 psychological level.
On the bullish side, a liquidity sweep from the 47.32 level followed by an immediate rebound could offer a short-term trading opportunity, targeting the 52.50 resistance level initially, and potentially the 54.44 all-time high if momentum continues.
In the four-hour timeframe, a considerable downside correction is present, as the recent price action has shifted the trend from bullish to bearish after moving below the cloud area. Since the price is trading within a descending channel, investors should closely monitor how it reacts to channel resistance before anticipating the next market direction.
In the secondary indicator window, the MACD histogram has lost its downside momentum and formed a positive bar above the neutral level. Meanwhile, the signal line has found a bottom and made a bullish crossover at the lowest area of the month, indicating potential buying pressure.
Based on this outlook, a valid channel breakout followed by consolidation above the 50.38 resistance level could offer a potential long opportunity, targeting the 54.00 level.
On the other hand, failure to break above the key channel resistance could challenge the bullish sentiment. In that case, a downside reversal from the 50.00–51.00 area could act as a channel extension opportunity, targeting the 45.00 support level.
On the hourly timeframe, the introduced selling pressure has failed to maintain momentum below 47.6611, from where a valley recovery has been observed. Following the bullish recovery, the price attempted to move lower and retested the support level before forming another swing high.
However, the dynamic EMA wave and the weekly VWAP line remain above the current price, acting as resistance.
In the secondary indicator window, the interbuy pressure remains high, while the TDI (Traders Dynamic Index) is hovering near the upper peak area.
Based on this outlook, a bullish correction is still pending, and 50.34 is the next resistance level to watch. As long as the price remains below this crucial resistance line, the primary expectation would be a sideways bearish correction.
On the other hand, if the EMA wave consolidates above the 50.000 psychological level, it could initiate a long-term bullish continuation toward the 54.00 area.
Given the overall market structure, ongoing geopolitical tensions, and record gold prices, the existing silver bullish trend could resume. Despite the recent 10% drop from the all-time high area, the price still shows no clear sign of a major dump. In that case, any intraday signal from a reliable price zone could present a decent trend-trading opportunity.
