(Kitco News) - Silver has embarked on a wild rollercoaster ride, with the market seeing renewed selling pressure after hitting critical resistance above $54 an ounce overnight.
In the last seven sessions, silver managed to recover all of its losses from last month’s sharp selloff, which saw prices drop 16% in two weeks.
Overnight, spot silver rallied to $54.39 an ounce; however, the market has been unable to hold its gains and was hit with a wave of selling at the start of the North American trading session. Spot silver last traded at $52.75 an ounce, down nearly 1% on the day.
Although silver’s price action has formed a critical double top, sentiment in the marketplace remains relatively bullish. Jim Wyckoff, Senior Market Analyst at Kitco.com, said he sees the selloff as routine profit-taking.
Fawad Razaqzada, Market Analyst at FOREX.com, said he expects silver to be bought on dips.
“This could be a false signal, so we should be careful in drawing any conclusions from it yet. A double top without a break of the neckline is not of itself a significantly bearish sign, but a warning for the late buyers, nonetheless. As a minimum, silver will need to break and close below $50 for me to turn decisively bearish,” he said.
Nick Cawley, Market Analyst for Solomon Global, said that he also does not see a lot of technical chart damage in silver’s selling pressure.
“While a double top can be a negative chart pattern, I don't see any negative on the daily silver chart. A confirmation of a double top would need to see the neckline around $47 broken and the recent swing low around $45.50. The daily chart is currently showing a series of seven higher lows and higher highs while the MACD indicator has turned higher,” he said.
According to analysts, the entire precious metals sector has been benefiting from growing expectations that the slowing economy will force the Federal Reserve to cut interest rates next month and through 2026.
“Investors are increasingly seeking tangible assets supported by tight supply amid concerns over economic worries — particularly in the US, where the fiscal debt focus will resurface as the government reopens,” said Ole Hansen, Head of Commodity Strategy at Saxo Bank.
#Silver has delivered an astonishing comeback, nearly reaching a fresh record high after tumbling 16% and fully recovering within just four weeks. Investors are increasingly seeking tangible assets supported by tight supply amid concerns over economic worries — particularly in… https://t.co/PYhmfcq5rt pic.twitter.com/fhXXoOL30w
— Ole S Hansen (@Ole_S_Hansen) November 13, 2025
Silver’s recent recovery has significantly outperformed gold, with the gold/silver ratio falling to a five-week low of 79.59. Some analysts note that, along with bullish fundamentals as a monetary metal, silver is also benefiting as an industrial metal after it was designated a critical metal in the U.S. Geological Survey’s (USGS) 2025 List.
In a recent interview with Kitco News, Matthew Piggott, Director of Gold and Silver at Metals Focus, said that even if the global economy slows, industrial consumption should continue to provide solid support for silver.
Growing industrial demand has created significant supply deficits in the silver market for the last five years, and that is unlikely to change anytime soon. Piggott said he suspects the world economy would have to see a substantial slowdown to reduce industrial demand enough to balance the market.
David Morrison, Senior Market Analyst at Trade Nation, said that while silver still has plenty of potential, investors should be mindful of its volatility.
“Its daily MACD has turned up sharply, suggesting that there’s strong upside momentum. But given the size and speed of this latest rally, there must be concerns that another pullback may be on its way. However one looks at it, silver is living up to its reputation as gold’s unruly sibling,” he said.
Commodity analysts at TD Securities said they don’t expect silver to have enough momentum to hit all-time highs. They described the current resurgence as short-term technical buying.
“The call spread was rolled over in the last session, reducing market pressures in the immediate term. Still, while these flows were technical in nature, they have lifted prices back towards ATHs — could this price action now reignite the speculative fervor in precious metals?” the analysts said. “There are very few historical precedents to lean on, but in no instance has this set-up subsequently led to large-scale buying activity over the following month.”
