Silver price prediction: XAG/USD extends rebound to $48.93 ahead of FOMC minutes

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Silver price prediction: XAG/USD extends rebound to $48.93

Highlights

Silver regains strength to trade near $49 as traders await key FOMC release.

RSI and higher lows confirm bullish control, supported by macro and industrial demand.

Dollar weakness and safe-haven flows combine to reinforce silver’s upward momentum

On Tuesday, silver had fallen 2.45% to an intraday low at $47.30 before recovering slightly to close near $47.80. The quick reversal that followed shows how resilient buyers have become, supported by strong fundamental drivers. As of today’s European session, silver is up more than 2% for the day and has turned its week-to-date performance back into positive territory, now showing a gain of about 1.8%.

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

Technically, the ability of silver to reclaim lost ground and set new highs suggests that momentum remains firmly intact. The RSI continues to hold in overbought territory, as it has since mid-September. However, rather than signalling exhaustion, the elevated RSI has become a reflection of persistent demand and sustained market strength. Price structure on the daily and four-hour charts continues to show higher highs and higher lows, confirming that bullish control is intact.

Semiconductor sector surge and Fed rate cut hopes continue to anchor silver rally

From a macro perspective, the broader market environment continues to favour silver over gold. Growing acceptance that the U.S. Federal Reserve could cut interest rates before the end of the month has kept flows directed toward non-yielding assets. A prolonged U.S. government shutdown is adding to the safe-haven bid as investors seek protection against potential policy disruption. In addition, industrial demand for silver, particularly from the semiconductor and AI hardware sectors, is adding a layer of structural support. The recent 3% surge in the semiconductor index following the AMD and OpenAI supply partnership highlights how sector-wide optimism is spilling into silver’s industrial narrative.

Meanwhile, the dollar’s decline today has provided additional lift to silver prices, reinforcing the metal’s momentum. Market attention now shifts to the upcoming release of the Federal Open Market Committee (FOMC) meeting minutes later in the New York session. Traders are watching closely for any signs of dovish language that could further pressure the dollar and extend silver’s rally.

Overall, silver continues to demonstrate remarkable strength supported by both technical momentum and macro tailwinds. A breakout above $49 would set the stage for a potential run toward the $50 all-time high

We discussed silver trading near $48.17 after a 1.7% intraday drop as dollar strength pressured metals. RSI turned bearish as traders awaited a rebound above $48.4 to restore bullish momentum.

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