Silver (XAG/USD) squeeze shakes market participants

[Redator]

The run in Silver prices has been nothing short of extraordinary.

Since the start of the year, the metal has surged more than 80%, with most of the move unfolding after Powell’s late-August speech at Jackson Hole (+37% in a 44-day span).

Having broken its 2011 record highs of $49.81, Silver now trades comfortably above $50, and definitely cementing its seat as one of the most explosive rally in more than a decade.

Beyond speculation, Silver’s industrial demand — particularly in photovoltaic panels, EVs and advanced electronics — is driving the squeeze.

Supply issues are mounting, with growing fears that the metal’s rarity could lead to some disastrous developments for the precious metal.

Traders are increasingly nervous.

Some metal specialists like Brian Kuszmar admit they have never witnessed a market this volatile, not even during the infamous 1980s Silver boom.

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Brian Kuszmar, metal specialist since 1977 – Source: X – October 15, 2025

The parabolic rise now raises one big question — will something blow from this rally?

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Silver (XAG/USD) multi-timeframe analysis

Daily Chart

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Silver (XAG) 2-Day Chart, October 15, 2025 – Source: TradingView

Looking out on higher timeframes really mark how strong the rally is.

The move is becoming more parabolic as time goes but we haven't seen widespread market panic for now:

What can happen in the strongest squeezes is a development of higher-gaps on very thin volumes.

Volumes are indeed getting thinner as the rally continues but things are not too out of whack.

Up 3% at one point in today's session, some stalling has happened at a test of the $53.71 high timeframe 1.618% Fibonacci-extension (session highs).

Reactions don't imply sudden reversals, but it's essential to keep this level in view for reversal/breakout analysis. Let's take a closer look.

8H Chart and levels

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Silver (XAG) 8H Chart, October 15, 2025 – Source: TradingView

The price action is slowing around the current highs after yesterday's strong profit-taking bar.

For now, a convergence of a lower high forming with the same pattern on the RSI prompts some slowdown in the silver-rush.

Keep an eye on the upward trendline that could come into play on a retracement, particularly as it comes close to the $49.81 2011 record that hasn't been retested.

Levels to watch for Silver (XAG) trading:

Resistance Levels:

• Daily peak $53.71
• $52 to $54 current ATH resistance
• Potential resistance 1 $57.50 to $60 (1.382% from 2022 lows)
• Potential resistance 2 $62 to $65 (1.618 from Impulsive Move)

Support Levels:

• $48 to $49 2011 High Pivot
• $43 to $44 higher timeframe support
• $39.50 to $40 higher tf momentum pivot zone
• 2012 Highs Support around $37.50

1H Chart

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Silver (XAG) 1H Chart, October 15, 2025 – Source: TradingView

Despite the lower high formation, the price action is still consolidating close to the hourly resistance – This marks bull resilience.

Keep an eye on the 50-H MA, currently at $52.12. An hourly close below would confirm a retracement to at least the previous ATH level at $49.80.

However, a daily close above would maintain the upward trajectory.

Safe Trades!

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