Silver Faces Further Downside as Prices Fall 55% From Their Peak
Silver is showing renewed weakness after a sharp correction from its record high. With prices trading below key moving averages and the US Federal Reserve's interest rate decision approaching, another 10-15% decline remains a possibility if selling pressure continues. Gold could also face volatility as traders assess interest rates, inflation and the US dollar.
Silver prices are facing heavy selling pressure after falling nearly 55% from their all-time high of above $120 per ounce earlier in 2026. On October 28, silver is trading near $53.76 per ounce, according to the provided chart. The sharp correction has raised concerns that prices could fall another 10-15% if the current bearish trend continues.
Why is silver falling?
The decline is linked to changing interest rate expectations, a stronger US dollar, rising bond yields and concerns about inflation. When interest rates and bond yields rise, investors may prefer assets that offer interest income instead of holding gold and silver, which do not pay interest.
Silver is also used in industries such as electronics and solar energy. Concerns about global economic growth and industrial demand can therefore put additional pressure on silver prices.
What does the technical chart indicate?
The daily chart shows silver trading below its 20-day and 50-day exponential moving averages (EMAs). The 20-day EMA is around $57.50, while the 50-day EMA is near $60.47. Both are above the current price, indicating that sellers remain in control.
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