Silver Shines Bright as Investors Navigate a Week of High Impact Economic Events

This week’s calendar is packed with market-moving releases that could stir volatility across major currencies and commodities. Key highlights include the Swiss National Bank’s policy decision, US GDP and unemployment claims, Canada’s monthly GDP data, and the US Core PCE inflation report—the Fed’s preferred gauge of price pressures. Traders will also keep an eye on Australia’s parliamentary elections, which could sway sentiment around the Aussie dollar. Against this backdrop, silver’s sharp rebound remains in focus as investors weigh both technical signals and fundamental drivers.

High Impact Economic Events

Thursday 10:30 am (GMT+3) – Switzerland: SNB Policy Rate (CHF)

Thursday 15:30 (GMT+3) – USA: Final GDP q/q (USD)

Thursday 15:30 (GMT+3) – USA: Unemployment Claims (USD)

Friday 15:30 (GMT+3) – Canada: GDP m/m (CAD)

Friday 15:30 (GMT+3) – USA: Core PCE Price Index m/m (USD)

Saturday All Day – Australia: Parliamentary Elections (AUD)

Chart Analysis

Since bottoming at $28.25 per ounce on April 7, silver has staged a robust rebound of more than 57% from trough to peak, underscoring renewed bullish sentiment and steady inflows of buying interest.

Technically, the setup remains constructive. The Momentum Oscillator is firmly above the 100 baseline, signaling sustained upside pressure, while the Relative Strength Index (RSI) holds comfortably above 50, reinforcing the positive momentum backdrop. Price action is also well-supported above the 20-period EMA, with both the 20- and 50-period EMAs trending higher, confirming the prevailing uptrend.

However, signs of caution are emerging. A bearish divergence is beginning to develop between price and the Momentum Oscillator, and an overbought RSI suggest fading near-term strength, raising the risk of consolidation or corrective pullback even as the broader uptrend remains intact.

Key Resistance Levels

If buyers maintain control of the market, traders may shift their focus to the following four potential resistance levels:

44.451: The initial resistance level is estimated at 44.451, mirroring the daily high marked on September 23.

45.684: The second price target is seen at 45.684, reflecting the weekly resistance, R3, calculated using the standard Pivot Points methodology.

47.946: The third target is observed at 47.946.

49.111: An additional price objective is set at 49.111, corresponding to the 423.6% Fibonacci Extension drawn from 42.951 to 41.125.

Key Support Levels

If sellers take control of the market, traders may focus on the following four key support levels:

42.951: The initial support level is seen at 42.951, representing the peak marked September 16.

41.125: The second support level is positioned at 41.125, aligning with the trough from September 17.

39.514: The third downside target is noted at 39.514, corresponding to the high point formed on July 23.

38.066: An additional downside target is determined at 38.066, mirroring the daily low marked on August 27.

Fundamentals

Silver has crossed $40/oz for the first time in 15 years, renewing investor interest. Analysts highlight the gold-to-silver ratio (GSR), now around 85 versus a historical average in the 60s, suggesting silver may be undervalued. Unlike gold, over half of silver’s demand comes from industrial uses like electronics and solar panels, making it more volatile and sensitive to economic slowdowns.

While silver has delivered strong short-term gains when GSR is high, it also suffers deeper drawdowns and weaker long-term consistency compared to gold. Gold remains the stronger hedge and portfolio stabilizer, but silver—cheaper and more speculative—can serve as a tactical complement for investors seeking higher risk and potential reward.

Conclusion

With a busy economic calendar ahead and silver trading near multi-year highs, volatility is likely to stay elevated. The broader uptrend remains intact, but overbought signals and emerging divergences point to the possibility of near-term pullbacks. For investors, gold continues to offer stability as a hedge, while silver stands out as a higher-risk, higher-reward complement—best approached with tactical positioning and disciplined risk management.