Silver price to attract more buyers in overbought territory
Precious metals have recorded stellar performance in 2025 as geopolitical tensions and President Trump’s unorthodox trade policies push investors to safe-haven assets. Notably, gold’s safe-haven appeal among institutions and individual investors has skyrocketed; yielding a 60% price increase year-to-date. However, it is silver that has really been stealing the spotlight in recent weeks.
The white metal has been up by close to 80% YTD; hitting a new all-time high earlier in the week before pulling back slightly. In recent weeks, the US government shutdown and renewed trade tensions between the US and China have bolstered silver price to new levels. Despite being in the overbought territory, it continues to attract buyers. While the trend trading strategy is at play, investors are cautious of the potential corrective pullback.
Gold rallying set to delay silver price correction
Silver price rallying to a fresh all-time high has triggered profit-taking; slightly easing the bullish momentum that has yielded double-digit gains this year. While a corrective pullback is overdue, the fundamentals remain solid.
The US-China trade relations continue to deteroriate with both sides hesitant to budge. Following China’s surprise restrictions on rare earth minerals and the related technologies, President Trump has threatened to impose additional tariffs of upto 100% on the Asian country. This tit-for-tat, coupled with the US government shutdown that still has no end in sight, continues to bolster precious metals’ safe-haven appeal.
Additionally, Jerome Powell’s dovish remarks earlier in the week have strengthened expectations of a 25-basis point rate cut by the Fed in October and another in December. The US central bank is particularly keen on the cooling labor market; an aspect that’s supporting gold price and other precious metals.
At the time of writing, the gold price was at a new record high of $4,235 an ounce. Investors looking to benefit from the historic gold rally have steadily shifted to the less expensive silver for exposure.
Silver price technical analysis
Silver price edged higher earlier on Thursday after the slight pullback from its all-time high in the previous session. Amid the rallying, the asset is set to record its ninth straight week of gains.
Notably, it continues to attract buyers despite being deep in the overbought territory at an RSI of 78. While silver price may retest the all-time high hit earlier in the week, a corrective pullback is likely in the ensuing sessions.
As such, the range between the record high of 53.59 and the crucial support zone of $50.15 will be worth watching in the near term. Further correction may activate the support along the 20-day EMA at $48.25. On the flip side, additional buyers may bolster silver price to a new level at $55.
Read more: Here’s why the gold price and Swiss franc (CHF) are soaring this year
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