Silver Retains Gains as Overbought Signals Limit Advance

Silver's short-term support contrasts with October weakness

Economies.com identified two sources of support for silver: an earlier double bottom on the short-term chart and a price above the EMA50, which serves as a moving support level. Both favored a further near-term advance. Relative strength indicators, however, had begun flashing negative signals after reaching deeply overbought readings, limiting gains as those conditions eased.

The intraday strength followed a difficult October. In its November silver forecast, published October 30, EBC Financial Group reported a roughly 15% decline during October and a break below support at $55. Silver was near $51.50 an ounce on October 30, beneath its 20-, 50- and 200-day EMAs. Its daily RSI was about 26.6, an oversold reading.

Choice International's October 31 weekly outlook offered another measure of the weakness: COMEX silver had dropped below $50 an ounce for the first time since November 2025, while the gold-silver ratio reached an 11-month high of 78.88. Money managers reduced their net-long silver holdings by 844 contracts to 2,902, leaving bullish positioning at its lowest in more than two years.

Gold faces a similar overbought constraint

Gold also retained sharp intraday gains, Economies.com reported. An earlier break out of a minor descending price channel had freed it from a constraint on its short-term movement, while its position above the EMA50 provided further support.

As in silver, relative strength indicators had turned negative after reaching deeply overbought levels. Gold's effort to work off those conditions was holding back its latest advance.

EURUSD pulls back from 1.1260

Resistance at 1.1260 stopped EURUSD's advance and the pair moved lower in the latest intraday session, according to Economies.com. The update nevertheless described a short-term bullish correction, with a supporting trend line and trading above the EMA50 favoring a recovery. The pair was seeking the momentum needed to recover and break through resistance.

That barrier sits within the broader 1.1255-1.1285 resistance band identified in FXStreet analysis published through TMGM on November 2. At that point, the pair was trading between that band and nearly 18-month lows just above 1.1100. The analysis also noted Fitch's change in its French sovereign debt outlook from stable to negative, alongside upward revisions to the eurozone's October manufacturing PMI readings.

Coffee breaks support after arabica's five-week low

Renewed selling pushed coffee below the additional support level at 282.85, Economies.com reported in its November 5 update. The decline extended to 277.00 as new bearish waves developed.

The previous session had brought another loss for December arabica. CocoaIntel reported a November 4 settlement of 279.75 cents per pound, down 1.48% for the day and a five-week low. The contract had lost 9.01% since October 23. January ICE robusta moved in the opposite direction that session, rising 0.56% to $3,228 per metric ton.