Silver, after a remarkable surge and reaching a historic record around $54.45, faced its sharpest decline in recent years. A 9% drop in a single day—even more severe than gold’s fall—alarmed many investors. Now trading around $48.96 and nearly 10% below its peak, the market stands at a turning point. You can visit the Trendo platform and utilize advanced trading tools and features to conduct your analyses with greater precision and confidence.
Technical Analysis of Silver (October 23, 2025)
From a technical perspective, silver has returned to the key level of $48.965 following a Spike and Drop pattern from its peak of $54.453—a level that previously acted as resistance and now serves as support. Breaking this level could lead to a correction toward the $47.00 zone. On the resistance side, crossing the psychological level of $50 is key to resuming the uptrend, after which targets of $52-$53 become accessible. The long-term ascending trendline from the $36.953 bottom remains intact, and the overall structure stays bullish, though short-term momentum has been severely damaged. The strong demand zone in the $47-$49 range could prevent further declines. Silver, due to its dual role as both a precious and industrial metal, typically experiences higher volatility than gold.
Fundamental Analysis of Silver (October 23, 2025)
Fundamentally, the recent decline was primarily driven by widespread profit-taking following significant gains. However, geopolitical and trade tensions are reviving demand for safe-haven assets. Reports indicate the US is considering export restrictions on software to China, though President Trump confirmed plans to meet with Chinese President Xi Jinping. Meanwhile, the Trump administration has blacklisted Russia’s largest oil producers (Rosneft and Lukoil) to push Moscow toward negotiations to end the Ukraine war. Additionally, the long-term outlook for silver remains positive due to industrial demand in electric vehicles, data centers, and solar farms, coupled with declining inventories in London and Shanghai warehouses.
Final Thoughts
The recent silver decline presents an opportunity to reassess positions. A balanced strategy includes scaled buying, diversification, and monitoring trade and geopolitical developments. Given silver’s inherently high volatility, precise risk management is essential. The long-term outlook remains promising, considering growing industrial demand in renewable energy and technology sectors.
