- Silver gains some follow-through traction and rises to a near two-month high on Monday.
- The technical setup suggests that the path of least resistance for XAG/USD is to the upside.
- Any significant correction could be considered a buying opportunity and remain cushioned.
Silver (XAG/USD) is building on its recent strong upward trajectory seen over the past week or so and is climbing to a near two-month high on Monday. The white metal is holding onto its intraday gains during the first half of the European session and is currently trading just below the $31.00 mark, up 0.70% on the day.
Looking at the bigger picture, Friday’s breakout through a short-term descending trendline was seen as a fresh trigger for bullish traders. The subsequent move higher, coupled with the fact that oscillators on the daily chart have just started gaining positive traction, suggests that the path of least resistance for XAG/USD is to the upside and supports prospects for further gains.
Hence, some follow-through strength towards the test of the next relevant hurdle, around the $31.45-$31.50 supply zone, seems a distinct possibility. Momentum could further extend towards reclaiming the $32.00 mark, above which the XAG/USD could again rally towards challenging a decade-high, around the mid-$32.00s touched in May.
On the other hand, the horizontal zone of $30.50-$30.45 now seems to protect the immediate downside. Any further decline could be considered a buying opportunity and remain cushioned near the aforementioned breakout point of the descending trend line resistance-turned-support, currently near the psychological $30.00 mark. The latter could act as a key turning point for short-term traders.
A convincing break below it could trigger aggressive technical selling and make the XAG/USD vulnerable to accelerate the decline towards the $29.40-$29.35 region en route to the $29.00 round figure. Some follow-through selling could shift the bias in favor of the bears and expose the $27.70 area, or the monthly low, with some intermediate support near the $28.20-$28.15 zone.
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.