From Oversold to Overpowered! Silver Prices Surge Again in Asian Session
Silver prices rose sharply in trading on Wednesday (November 5, 2025) during the Asian session, continuing their positive trend after several days of pressure due to the strengthening US dollar. This strengthening was driven by surging industrial demand from Asia, as well as a return of investor interest in hedging assets.
Physical demand for silver from the industrial sector was the main driver of the price increase. Asia, particularly China and India, showed a significant increase in silver use for industrial needs, such as solar panels, semiconductors, and electric vehicle components.
According to data from the Silver Institute, industrial silver consumption in Asia reached a record high since 2019. "The surge in solar panel production and the expansion of semiconductor manufacturing in Asia have strengthened the fundamentals of silver demand," the institute wrote in its latest quarterly report.
Geopolitical uncertainty and concerns about a global economic slowdown also prompted investors to turn to hedging assets like gold and silver. This situation was further exacerbated by short covering—where market participants who had previously opened short positions closed their positions, thus driving prices higher.
According to a Business Insider report, several large hedge funds have begun reducing their short silver positions since the beginning of the week, after the price of the white metal held above a key technical support area of US$47.00 per troy ounce.
Technically, silver prices are currently trading in the range of US$47.20–US$47.80 per troy ounce, up around 1% in the Asian session this morning. Economies.com analysts note that silver has broken through its medium-term moving average and is showing a new bullish signal above the US$47.50 resistance.
If the price can break through US$48.00, the potential for strengthening to the US$49.20–US$50.00 area is wide open. However, if the US dollar strengthens again in the European session tonight, corrective pressure is still possible.
Overall, today's strengthening in silver prices reflects a combination of strong fundamental support from the industrial sector and expectations of looser monetary policy in the US. However, the market remains wary of the release of US employment data later this week, which could influence the future direction of the Fed's interest rates.
"The silver market is currently in a healthy adjustment phase, with bullish potential remaining dominant as long as pressure from the US dollar is not too strong," said a MarketChronicle Journal analyst. (mrv)
Source: Newsmaker.id
