Silver price prediction: XAG/USD rebounds 8% as Treasury yields slide post-FOMC

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Sholanke Dele

31.10.2025

Silver price prediction: XAG/USD rebounds 8% as Treasury yields slide post-FOMC — As of today’s European session, silver is trading near $49.3

Silver [XAG/USD] extended its bullish recovery on Friday, marking a strong rebound from the heavy selloff that had dominated the market in the second half of October. Since Tuesday, silver has gained over 8%, lifting prices from a low at $45.6 to $49.3 as of the European session. The 50-day EMA at $45.6 provided the technical base for the recovery, reversing the downward trajectory that followed the all-time high recorded earlier in October.

- Silver has climbed 8% since Tuesday, reversing October’s sharp correction on easing yields.

- Silver 20-day EMA supports bullish structure, hinting at further upside potential ahead.

- Fed rate cut and geopolitical risks to sustain silver buying upside toward liquidity gap.

The rebound gathered momentum on Thursday after the Federal Reserve announced a rate cut as expected. Although Chair Jerome Powell delivered hawkish remarks during his press conference, the overall effect of lower interest rates, coupled with falling U.S. Treasury yields and geopolitical tension, supported strong demand for precious metals. Thursday alone recorded a 3% rally, which solidified the week’s shift from a bearish tone to a positive performance.

Silver price dynamics (Oct 2025). Source: Tradingview

Technically, silver’s surge above the 20-day EMA at $48.5 confirms renewed buying strength and reinforces the short-term bullish structure. The current move has pushed the week-to-date gain to around 1.8%. The 20-day EMA now acts as immediate support for any short-term retracement. From a broader perspective, this week’s price action has also saved the month of October from closing negative. Earlier in the month, silver had surged 16% to reach an all-time high before retreating below its opening level during the mid-month correction.

Silver traders see sixth straight monthly gain

As of today’s European session, silver is trading near $49.3, up 0.8% on the day, and showing a month-to-date gain of about 5%. Market participants expect the rebound to extend further due to sell-side inefficiencies between $51.3 and $49.3 created during last week’s sharp selloff. This unfilled liquidity zone is now acting as a magnet for price action, suggesting that buyers could attempt to rebalance the range before the week closes.

Fundamentally, optimism about easing trade tensions between the U.S. and China could weigh slightly on safe-haven demand. However, persistent concerns about economic risks tied to the ongoing U.S. government shutdown and geopolitical uncertainties continue to lend support to the white metal. Taken together, these factors indicate that silver is on track to end the week and the month on a positive note, marking its sixth consecutive monthly gain.

Recently, we discussed silver holding $47.76 after a brief rally stalled as Powell signaled a measured Fed stance. Fed’s 25-bp cut and shutdown concerns kept precious metals investors cautiously optimistic.

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