SI1! Silver Extends 19% Rally Since Late October - Is a Short-Term Pullback Next?Silver prices continued their impressive upward march this week, with spot XAG/USD climbing to a fresh multi-month high of $54.397. The surge was driven by renewed optimism following progress toward ending the record US government shutdown, which bolstered risk appetite and lifted both gold and silver.
Since October 28, silver has maintained a steady bullish trajectory, showcasing robust momentum across recent sessions. This week alone, silver has advanced over 12.5%, rising from $48.318 to $54.397, while the overall rally since late October now totals roughly 19.4%, from $45.543 to $54.397 per ounce.
December silver futures mirrored the spot movement, reaching a session high of $54.395, indicating persistent buying interest and broad-based optimism in the precious-metals segment.
Key Drivers of the Rally
Strong Industrial Demand
Silver’s unique dual role as both a precious and industrial metal continues to underpin prices. Roughly 50–60% of global silver consumption stems from sectors like electronics, solar energy, and electric vehicles, where long-term demand remains structurally strong.
Safe-Haven and Investment Flows
Rising concerns over the US economic outlook, weak labor data, and growing expectations of a Federal Reserve rate cut in December have spurred investors toward precious metals. Silver, being more affordable than gold, often attracts additional speculative and retail inflows during such cycles.
Correlation with Gold and Macro Trends
The ongoing gold rally, coupled with a softer U.S. dollar and lower bond yields, has further strengthened silver’s momentum. Silver typically outperforms gold in the later stages of a precious-metal uptrend, amplifying its recent gains.
Trading Outlook - Silver Spot (XAG/USD)
Intraday and Weekly Strategy
At current elevated levels near $54.39, silver appears technically overextended, suggesting a potential short-term correction.
For Active Traders
Consider selling XAG/USD near 54.39 with downside targets at 52.80, 52.50, and 52.00 in the next few sessions.
For Short-Term Intraday Trades
Expect possible profit-booking before the US session, with volatility likely to trigger a quick 1.5–2% intraday move.
Conclusion
Silver’s multi-week rally has been fueled by a mix of industrial strength, macro optimism, and investment flows. However, after a 19% surge in just over two weeks, the metal is entering a zone of potential profit-taking and consolidation.
While the broader uptrend remains intact, traders should stay cautious at current highs - short-term pullbacks could offer better re-entry opportunities in the coming days.
