Silver price prediction: XAG/USD recovery slows as traders assess Powell restrained remarks

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Sholanke Dele

30.10.2025

Silver price prediction: XAG/USD recovery slows as traders assess Powell restrained remarks — Powell’s tone weighs on silver

Silver [XAG/USD] traded higher on Thursday, attempting to build on the recovery that began earlier in the week after the prolonged pullback from its all-time high at $54. The retracement that started in mid-October had driven prices to a low of $45.5 by Tuesday. From that point, silver began to attract renewed buying interest as traders priced in expectations for a rate cut from the Federal Reserve. The sentiment shift on Tuesday produced a bullish doji candlestick pattern, which hinted at a potential reversal in momentum.

- Silver holds $47.76 after brief rally stalls as Powell signals measured Fed stance.

- RSI around 50 shows indecision while traders await breakout above $48.45 resistance.

- Fed’s 25-bp cut and shutdown concerns keep precious metals investors cautiously optimistic.

Following that pattern, silver extended its upside move into Wednesday’s session, climbing to an intraday high at $48.45. However, gains faded after the Fed’s announcement and subsequent commentary from Chair Jerome Powell tempered market enthusiasm. Although the Federal Reserve delivered a 25-basis-point cut, lowering the benchmark rate to a 3.5–4.0 range, Powell’s tone was less dovish than investors had anticipated. He emphasized restraint in considering further reductions this year, citing uncertainty caused by the ongoing government shutdown and the need to assess risks to the labor market.

Silver price dynamics (Oct 2025). Source: Tradingview

The remarks triggered a pullback in precious metals, and silver reduced its Wednesday gains to close at $47.55. Technical factors also played a part in capping the advance, as the 20-day EMA acted as firm resistance around $48.45. This combination of macro disappointment and technical rejection halted the upward momentum, leaving traders to reassess the short-term direction.

RSI flat near 50 highlights indecision after mid-week bullish doji signal

In today’s European session, silver trades near $47.76, up 0.6% from the previous day’s close but still struggling to extend its recovery. The short-term RSI on both the one-hour and four-hour charts is neutral around 50, reflecting indecision as momentum stalls. Traders appear to be waiting for stronger confirmation of direction, either through a decisive break above resistance or renewed weakness toward recent lows.

From a technical standpoint, a break above the 20-day EMA could re-establish bullish momentum and lift silver into positive territory for the week, currently showing a 1.3% loss. However, failure to clear that resistance could see further consolidation before the next catalyst emerges. Fundamentally, sentiment across precious metals continues to depend on how investors interpret the Fed’s tone on future easing. For now, silver’s path forward hinges on whether it can convert its short-term stability into a broader rebound that reclaims control above the $48 zone.

Recently, we discussed silver jumping 2.6% to $48.12, reversing part of its eight-day decline. A bullish doji pattern and RSI rebound confirmed a momentum shift toward renewed buying interest.

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