Silver set to resume downtrend after correction

Uncertainty is creeping into the silver market after its recent rebound from the late-October lows. Prices are now hovering around $48.60, with key support at $48.30, reflecting a lack of clear direction among traders.

Technical indicators back up the view that the recent upward momentum is stalling. Although it's still positive, the Chaikin Oscillator has rolled over after its October 30 peak, which suggests buying pressure is fading, and a short-term bearish shift may come into play. Meanwhile, the Stochastic Indicator (%K at 60 and %D at 46) is in neutral territory, slowly climbing toward overbought levels and raising the threat of a technical pullback and lower prices.

From a fundamental standpoint, silver is feeling the weight of a strengthening US dollar. This greenback hike comes on the heels of cautious comments from Federal Reserve (Fed) Chair Jerome Powell over the timeline of future rate cuts. On top of that, the drop in geopolitical tension following a provisional US-China trade deal is making safe-haven assets like silver less appealing.

In the short term, seasonal patterns are set to add more pressure on the market. Demand for precious metals typically softens in November once India's festive season wraps up, which could lead to more weakness in the physical market and push prices lower.

Technically, bullion appears poised to test the critical support between $48.30 and $47.71. A clean break below this zone could speed up a decline toward the next significant footing at $46.50. However, the chances for a meaningful quotes surge seem slim, as buying activity remains weak—a view confirmed by deteriorating negative readings on the Chaikin Oscillator.

Consider the following trading plan:

Sell silver at the current price, or when it approaches $50.06. Take profit: $46.50. Stop loss: $51.00.

This forecast is valid from November 3 till November 7, 2025.