Silver (XAG) Forecast: $50 in Sight or a Pullback to $47.29? Is Silver Hitting Resistance?

LONDON (October 7) Silver prices are stalling just under the psychological $50 mark, as traders decide whether to extend the rally or take profits. Spot silver (XAG/USD) edged lower on Tuesday, forming a new minor top at $48.77. The pullback is modest, but price action near historic levels is drawing close scrutiny.

Minor Top at $48.77—Is Momentum Fading or Building?

Daily Silver (XAG/USD)

Silver’s recent breakout has been strong, but today’s lower low places $48.77 as a new key resistance level. A breakout above this point would confirm bullish continuation and bring $49.81 to $50.00 into focus. However, failure to clear $48.77 could trigger a rotation lower as some traders look to fade near-term strength.

The current minor range is $45.81 to $48.77. Price has dipped under the 50% retracement level at $47.29, putting this area on watch for potential support. A break below $45.81 would shift momentum to the downside and signal a short-term reversal, likely drawing in technical sellers.

Pullback or Breakout? Traders Split on Next Move

Price behavior suggests a market split—some traders are positioned for a breakout through $49.81, while others are eyeing a retracement into the $47.29–$45.81 value zone. Bullish conviction remains, but with silver testing decade-old highs, many are hesitant to chase unless upside levels are cleared with conviction.

That caution is magnified by silver’s proximity to long-term price memory at $50—a level last seriously tested during the 2011 peak. Heavy historical supply near this zone adds weight to short-term resistance concerns.

Gold’s Pause Below $4000 Weighs on Sentiment

Daily Gold (XAU/USD)

Gold’s stall just below $4000 is also tempering silver enthusiasm. While the metals trade on separate fundamentals, their technical correlation often triggers spillover flows. Gold is flashing early signs of a potential reversal, which could act as a drag on silver’s momentum in the near term.

Silver Outlook: Bullish Structure, but Resistance is Heavy

The broader trend remains constructive, but the $48.77 level must be cleared to keep bullish momentum intact. A confirmed break would likely drive silver toward the long-watched $50 target. Until then, traders should be prepared for corrective action down to $47.29 or even $45.81. The risk-reward at these levels favors caution while the market searches for fresh momentum to drive the next leg.

FXEmpire