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Silver Faces Setbacks: Hopes for Rate Cuts and Industrial Challenges Put Metal's Strength to the Test

Silver Faces Setbacks: Hopes for Rate Cuts and Industrial Challenges Put Metal's Strength to the Test

Bitget-RWA2025/11/19 13:38
By:Bitget-RWA

- Silver prices rose 0.45% on Nov 19, 2025, but remained 12.7% below their October peak amid Fed rate cut expectations and weak industrial demand. - Analysts highlight key support/resistance levels (₹1,55,000–₹1,62,000) and note Fed policy and global economic recovery will drive near-term volatility. - Aya Gold & Silver aims to monetize silver-rich stockpiles in Morocco, reflecting industry efforts to optimize by-product recovery amid fluctuating prices. - Long-term optimism persists due to silver's dual r

On Wednesday, November 19, 2025, silver prices inched up but stayed about 12.7% below their all-time high of ₹1,78,100 per kg reached in mid-October, as investors weighed the likelihood of Federal Reserve rate cuts and evolving industrial demand. MCX Silver December futures climbed 0.45% to ₹1,55,337 per kg in early trading,

. The metal has experienced both gains and declines in recent days, highlighting ongoing uncertainty around monetary policy and the global economy.

Silver’s pullback from its peak followed three straight sessions of losses in early November, fueled by growing speculation that the Fed may lower interest rates as inflation shows signs of easing. Experts pointed out that, despite short-term fluctuations, the underlying fundamentals remain supportive. Ponmudi R, CEO of Enrich Money, noted that MCX Silver is currently finding support near ₹1,55,000, with significant resistance at ₹1,58,000 and ₹1,62,000. He stressed that the broader economic outlook, particularly the possibility of Fed rate cuts, will likely shape silver’s direction in the months ahead.

Silver Faces Setbacks: Hopes for Rate Cuts and Industrial Challenges Put Metal's Strength to the Test image 0
Industrial demand, a major factor for silver, is also being closely watched. The metal’s key applications in electronics, solar energy, and healthcare have been challenged by weaker global manufacturing and ongoing trade disputes. Still, analysts at Emkay Wealth Management indicated that technical signals for silver suggest possible upward movement. They identified a “strong support level” at $47.60 per ounce (about ₹1,47,000 per kg) and forecast a potential rally to $52–$53 (₹1,58,000–₹1,60,000) if demand steadies.

Recent events in the mining industry have added to the market’s cautious mood. Aya Gold & Silver Inc., a Canadian company operating in Morocco, revealed plans to monetize a stockpile of silver-rich pyrite concentrate,

. Although this move is unlikely to directly impact global prices, it demonstrates broader efforts within the sector to maximize by-product recovery as commodity prices fluctuate.

Looking forward, investors are set to pay close attention to the delayed U.S. non-farm payrolls data, postponed due to the recent government shutdown, as well as the minutes from the latest Fed policy meeting. Comments from Fed Governor Christopher Waller—who noted that businesses are preparing for layoffs as AI boosts productivity—have heightened expectations for rate reductions, which could put additional pressure on precious metals.

Despite short-term challenges, some experts remain optimistic about silver’s long-term outlook. “Silver’s unique position as both an industrial material and an inflation hedge keeps it important for diversified portfolios,” Ponmudi said, adding that medium-term tactical investments could benefit from potential price recoveries. For now, however, silver’s trajectory will depend on central bank decisions and the pace of global economic improvement.

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Will gold and silver prices drop further? Here’s what experts predict

Aya Gold & Silver Unlocks Immediate Value and Progresses Environmental Cleanup with Sale of Precious Metals from Legacy Boumadine Stockpile

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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