- The price of Silver regains positive traction after the previous day’s pullback from a 12-year high.
- A move above the $34.25-$34.30 zone is needed to support prospects for further gains.
- Any significant decline could attract buyers and remain capped near $32.75-$32.65.
The price of Silver (XAG/USD) attracts some buyers during the Asian session on Thursday and, for now, appears to have halted its corrective decline from the $34.85-$34.90 area, or the highest level since October 2012 reached this week. The white metal is currently trading just below the round figure of $34.00, up over 0.50% on the day.
Looking at the bigger picture, the recent strength beyond the $32.65-$32.75 resistance zone was seen as a new trigger for the bulls. Furthermore, the oscillators on the daily chart remain comfortably in positive territory, suggesting that the path of least resistance for XAG/USD is to the upside. That said, this week’s false breakout above a short-term ascending channel extending from the August low warrants some caution.
Therefore, it will be prudent to wait for some follow-up buying and a sustained move beyond the immediate $34.25-$34.30 hurdle before positioning for further gains. XAG/USD could then accelerate the positive momentum and try again to conquer the psychological mark of $35.00. The momentum could extend further and lift the commodity to the October 2012 high, around the $35.35-$35.40 region.
On the other hand, the $33.45-$33.40 zone, or the weekly low reached on Wednesday, could protect the immediate decline before the round figure of $33.00. Any further decline will likely attract some buyers, which, in turn, should limit XAG/USD’s losses near the resistance-turned-support at $32.75-$32.65. However, some follow-on selling could shift the bias in favor of the bears and pave the way for further decline.
Silver daily chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
