Silver prices slipped on Thursday, erasing part of Wednesday’s gains that had reached an all-time high. The decline is partly attributed to an overbought Relative Strength Index (RSI) on the daily chart, prompting profit-taking, although the bullish technical setup suggests potential for dip-buying at lower levels.<\/p>\n
Trading around $65.75-$65.70 in the Asian session, silver saw a decrease of over 1% for the day. Despite this, silver remains close to its previous peak, with the technical setup favouring bullish traders. A breakout near $64.00 validated a positive short-term outlook, aligning with the 100-hour Simple Moving Average (SMA) as a strong support base.<\/p>\n
The RSI indicates neutral-to-bullish conditions on the 1-hour chart but appears overbought on the daily chart. The Moving Average Convergence Divergence (MACD) histogram suggests cooling momentum with a drop below zero. However, the overall setup remains moderately positive, supported by an upward-sloping 100-hour SMA, likely to attract dip-buying.<\/p>\n
Silver prices are also influenced by various factors including geopolitical events, interest rates, and the US Dollar. Industrial demand and the Gold\/Silver ratio also play roles in determining silver’s market movements.<\/p>\n
We are seeing a predictable pullback in silver after it hit a new all-time high yesterday, moving back below the $66.00 mark. This is healthy profit-taking, likely triggered by technical indicators like the daily RSI showing overbought conditions. Traders should view this not as a reversal, but as the market catching its breath after a significant run-up.<\/p>\n
Given the current dip to around $65.70, we see an opportunity in selling cash-secured puts with a strike price near the strong support level of $64.00. This strategy takes advantage of the heightened volatility, allowing traders to collect premium while setting a target to potentially buy silver at a lower price. This market uncertainty is partly fueled by the Federal Reserve’s meeting yesterday, where they held rates steady but signaled a continued restrictive stance into early 2026.<\/p>\n
For those with a more bullish conviction, this correction is a chance to initiate long positions through call options for the coming months. The underlying strength is supported by robust industrial demand, with the International Energy Agency’s fourth-quarter 2025 report showing a 25% year-over-year jump in global solar panel installations, a key use for silver. November’s US inflation reading also came in slightly hot at 3.5%, reinforcing silver’s appeal as a hedge.<\/p>\n
The Gold\/Silver ratio provides further context for this move, having fallen from over 85:1 for much of 2024 to around 70:1 today. While this shows silver has been outperforming gold, historical data from past bull markets suggests the ratio could compress much further. We believe there is still significant room for silver to gain on gold, supporting the idea that this uptrend is not over.<\/p>\n
Looking at market positioning, the most recent CFTC Commitment of Traders report confirms our view of institutional profit-taking. While large speculators trimmed some of their long positions at the peak, their net-long exposure remains near the highest levels we have seen all year. This indicates that despite the short-term dip, the bigger players are still positioned for higher prices in the weeks ahead.<\/p>\n","protected":false},"excerpt":{"rendered":"
Silver retreats after record highs, driven by overbought RSI; bullish setup invites dip-buying opportunities soon.<\/p>\n","protected":false},"author":62,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-37166","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/37166","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=37166"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/37166\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=37166"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=37166"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=37166"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}