silver prices have experienced difficulty extending gains after briefly rallying during the Asian trading session to reach the $48.55-$48.60 range. The metal has since retraced some of its previous day’s upward move and is currently trading around $47.75, reflecting a decrease of approximately 0.70% for the session.
From a technical standpoint, the commodity faces resistance near the 38.2% Fibonacci retracement level of its recent corrective pullback, around the $49.35-$49.40 zone. This level has historically acted as a barrier to upward momentum, and failure to sustain above it suggests that bearish traders maintain control. As a result, the current bias points toward continued depreciation in the near term unless prices can convincingly break above this resistance.
In terms of downside risks, traders are likely to wait for confirmation of a deeper move below the $47.00 support level before increasing short positions. Should this occur, silver could accelerate towards intermediate support levels at approximately $46.45, and then aim for the round-number support of $46.00. A breach of these levels might open the path to retesting the October swing low near $45.75.
Conversely, to regain bullish control, prices need to surpass the Asian session high of roughly $48.55-$48.60. Moving above this barrier could pave the way for a rally back towards the $49.00 level and ultimately challenge resistance zones around $49.35-$49.40. If the upward momentum persists beyond this threshold, prices may extend towards the psychological resistance of $50.00, aligned with the 50% Fibonacci retracement. Further gains could then target intermediate hurdles near $50.55-$50.60 and higher levels around $51.00 and $51.20, corresponding with the 61.8% Fibonacci level.
silver remains a favored asset among investors for its role as a store of value and a diversification tool, especially during periods of inflation or economic uncertainty. Its pricing is influenced by a multitude of factors, including geopolitical tensions, monetary policy, and the US dollar’s strength. Additionally, industrial demand, particularly from the electronics and solar energy sectors, plays a vital role — any shifts in manufacturing activity or economic growth in key markets like China, India, and the US can lead to significant price fluctuations. Lastly, silver ’s correlation with gold often results in synchronized price movements, with the gold / silver ratio serving as an indicator of relative valuation and market sentiment.
