Silver Report 22nd Oct 2025 By Amit Gupta, Kedia Advisory
Price Performance
* Silver dropped around 12.60%, falling below $48 after hitting record highs of $54.46.
* The decline was mainly due to profit-taking after a sharp rally.
* Strengthening US dollar contributed to the retreat.
* The end of India’s seasonal buying spree (Dhanteras)weighed on physical demand.
* Markets are awaiting Friday’s US inflation report and a likely Federal Reserve rate cut next week.
* Optimism over easing US-China trade tensions and expectations of resolving the US government shutdown provided mixed sentiment.
* Recent rally was driven by strong macroeconomic and physical market demand, especially from India.
* Recent volatility was amplified by a liquidity crunch in London’s silver market, triggering global demand for physical silver.
* Despite the pullback, silver remains significantly higher YTD amid expectations of further Fed easing and ongoing safe-haven demand.
Technical Indicators — Volatility
Technical Indicators — RSI
Technical Indicators — Vortex
Technical Indicators — Ulcer Index
Technical Indicators — Elliot Wave
Comex Silver Future - Silver Spot
Price Performance & Fundamentals: Silver dropped nearly 12.6%, retreating below $48 after touching record highs near $54.46, as investors booked profits following an exceptional rally. The fall was intensified by a stronger US dollar, fading festival demand in India, and shifting global sentiment. Despite the correction, silver remains significantly higher year-to-date, underpinned by strong physical demand, expectations of Fed easing, and heightened safe-haven interest amid lingering global uncertainties.
Volatility: Volatility surged sharply after silver’s record highs, mirroring intense speculative activity and wide price fluctuations. The heightened volatility signals market indecision, suggesting short-term traders must stay cautious as the metal seeks equilibrium following its steep decline.
RSI (Relative Strength Index): RSI readings have fallen from extreme overbought zones, confirming momentum loss post the record rally. The indicator currently points toward consolidation, with potential for rebound once prices approach key oversold thresholds around the lower support region.
Vortex Indicator: The Vortex Index shows a negative crossover, affirming short-term bearish momentum after the vertical rally. This pattern typically signals extended correction phases, though a reversal in trend strength may re-emerge if prices hold above the critical medium-term supports.
Ulcer Index: The Ulcer Index has risen considerably, reflecting increased investor anxiety and drawdown pressure. Elevated readings suggest heightened market discomfort, often seen before stabilization phases. Sustained high Ulcer readings may indicate short-term capitulation before a base forms.
Elliott Wave Analysis: The Elliott Wave framework indicates completion of a major impulse wave near $54.50, followed by a corrective phase likely unfolding as ABC retracement. The present pullback appears corrective within a longer-term uptrend, and the next wave could resume once price stability returns near support.
