Silver price prediction: Bulls eye $49 target if price reclaims 20 EMA barrier

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Silver price prediction

Highlights

Silver trades near $48.17 after a 1.7% drop during the European session today.

Dollar rebound and profit-taking weigh on silver despite bullish long-term structure.

Silver RSI turns bearish as traders await rebound above $48.4 for recovery.

The early drop erased all of Monday’s gains and triggered a short-term technical break on lower timeframes. The one-hour chart shows that silver fell below the previous higher low near $48.00, signalling a short-term bearish market structure shift. However, that weakness was contained as the 100 EMA on the same chart acted as intraday support and prevented further decline. The subsequent rebound lifted prices back above $48, where the 20 EMA has now become resistance. This struggle between EMAs highlights indecision among short-term traders, even though the broader trend on higher timeframes still points firmly upward.

Silver price dynamics (Sept - Oct 2025). Source: Tradingview

Monday’s rally, which saw silver climb to $48.76, marked the second consecutive day of gains, supported by rising daily traded volume. This rising volume in previous sessions had confirmed strong participation in the bullish trend. However, today’s decline came on even heavier volume, showing that some profit-taking is underway following silver’s multi-week advance. Still, technical indicators suggest this pullback could stay limited unless price breaks decisively below $47.71.

Silver to recover gains as U.S. government shutdown keeps rate cut bets alive

The one-hour RSI has slipped into bearish territory for the first time this week, signalling a temporary loss of short-term strength. If the RSI stays below the neutral line through the U.S. session, it could invite further downside toward $47.50. Conversely, a recovery above the 20 EMA near $48.20 would likely reinstate upward momentum and shift focus back to the $49 resistance zone.

From a macro standpoint, the ongoing U.S. government shutdown, now in its seventh day, is providing a counterweight to the dollar’s recovery. The Senate has yet to agree on a spending bill, keeping uncertainty elevated and reinforcing market expectations for rate cuts later this month. Those expectations continue to cushion silver from deeper declines, as traders price in lower yields and persistent policy support for safe-haven assets.

Overall, silver’s short-term weakness reflects a cooling phase within an otherwise strong uptrend. The immediate focus rests on whether the $47.71 intraday support can hold. A rebound above $48.4 would restore bullish momentum toward $49, while a sustained break below $47.71 could invite deeper correction before buyers step back in.

Recently, we discussed silver extending its seven-week rally as traders bet on multiple Fed rate cuts before year’s end. Strong RSI readings also fueled the metal’s climb toward the $50 all-time high.

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