28 Oct 2025
🥈 Silver (XAG/USD) Technical & Market Analysis
Current Market Sentiment
Silver continues its downtrend, trading near $46.80, extending losses for the third consecutive session. Market optimism over the US-China trade deal has fueled risk-on sentiment, prompting traders to shift away from safe-haven assets like silver.
Key bullish drivers, however, may limit the downside:
Expected Fed rate cut of 25 bps on Wednesday.
Ongoing debate over the US government shutdown and its impact on the Fed’s policy stance.
Technical Outlook
Immediate Support: $46.50 – $46.00.
Critical Support Zones: $45.50 and $45.00 (next downside targets if bearish momentum accelerates).
Resistance: $47.00 – $47.50. A move above this may trigger short-term upside toward $48.00.
Interpretation:
As long as silver remains below $47.00, the bearish bias persists, but the anticipated Fed rate cut could trigger short-covering rallies.
Traders may watch for rejection at $47.50 or failure to reclaim $47.00 as a signal for continued selling pressure.
Trading Insight
Bearish Scenario: Breakdown below $46.00 may open a move toward $45.50 – $45.00.
Bullish Scenario: A rebound above $47.50 could spark upside toward $48.00 – $48.50, limited by broader risk-on sentiment.
Summary: Silver remains in a short-term bearish trend, but macro factors like trade optimism and Fed policy could trigger counter-trend moves. Traders should monitor $46.50–$47.50 as a key range for potential entries and exits.
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