XAG/USD bulls have the upper hand while above $33.00 hurdle break-point
- Silver retreats after touching a fresh multi-month high during the Asian session on Thursday.
- The technical setup favors bulls and supports prospects for the emergence of some dip-buyers.
- A convincing break below the $32.00 mark is needed to negate the near-term positive outlook.
Silver (XAG/USD) attracts some sellers after hitting a nearly three-week top near the $33.70 region during the Asian session on Thursday and erodes a part of the previous day’s strong move up. The white metal currently trades around the $33.35-$33.30 area, down 0.75% for the day, though the technical setup supports prospects for the emergence of dip-buyers at lower levels.
The overnight breakout through a short-term trading range held over the past week or so, along with the fact that oscillators on the daily chart have just started gaining positive traction, validates the near-term positive outlook for the XAG/USD. Hence, any further decline is more likely to get bought into the $33.00 round figure mark, which should now act as a key pivotal point.
A convincing break below the said handle might prompt some technical selling and drag the XAG/USD further toward the $32.40 support en route to the $32.10-$32.00 area. Some follow-through selling will suggest that the recent recovery from the $28.00 mark, or the year-to-date low touched earlier this month, has run out of steam and pave the way for deeper losses.
On the flip side, momentum beyond the Asian session high, around the $33.70 region, should allow the XAG/USD to reclaim the $34.00 mark. The subsequent move higher could lift the commodity towards the $34.30 intermediate hurdle en route to the $34.55-$34.60 area or the highest level since October 2024 touched last month and the $35.00 psychological mark.
Silver 4-hour chart
