- Silver attracts some buyers on Thursday and holds near a more than one-month high.
- The technical setup favors buyers and supports prospects for additional earnings.
- Any corrective pullback could be seen as a buying opportunity and remain limited.
Silver (XAG/USD) trades with a positive bias above the $32.00 level during the Asian session on Thursday and remains close to a more than one-month high touched earlier this week. Furthermore, the technical setup suggests that the path of least resistance for the white metal remains to the upside.
This week’s sustained move beyond the 200 SMA on the 4-hour chart was seen as a key trigger for buyers. Furthermore, the recent upward movement seen in the last two weeks or so has been along an ascending channel. Apart from this, positive technical indicators on the daily and hourly charts validate the positive short-term outlook for XAU/USD and support prospects for further gains.
Therefore, a further move towards the test of the monthly high, around the $32.55-$32.60 area, which now coincides with the upper boundary of the mentioned channel, seems a distinct possibility. Some follow-up buying will confirm a fresh breakout and lift
On the other hand, weakness below the $32.00-$31.90 zone now appears to find some support near the $31.60 horizontal zone before the $31.45-$31.40 confluence. The latter comprises the 200-4-hour SMA and ascending channel support, which if broken decisively could trigger aggressive selling and shift the bias in favor of the bears. XAG/USD could then fall to levels below $31.00 en route to the mid-$30.00s.
Silver 4 Hour 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.
