Silver Trades With Negative Bias, Bullish Bias Remains
Silver attracted some sellers during the Asian session on Thursday (2/6) and eroded some of the weekly gains recorded over the past three days. The white metal is currently trading above mid-$32.00s, down 0.35% for the day, though the near-term bias seems tilted towards bullish traders and supports prospects for a further appreciating move.
From a technical perspective, XAG/USD showed some resilience below the 100-day Exponential Moving Average (EMA) on Friday. Moreover, oscillators on the daily chart have started gaining positive traction on the daily chart again and validate the near-term constructive outlook for the commodity. Hence, a subsequent strength towards the $33.00 mark, en-route February monthly swing highs, around the $33.40 area, looks a real possibility.
The next relevant hurdle is pegged near the $33.60-$33.70 region, above which XAG/USD could attempt to reclaim the $34.00 round figure and extend its climb towards the $34.50-$34.55 zone. The momentum could extend further towards the highest level since October 2012, nearing the $35.00 psychological mark touched in October 2024.
On the flip side, the $32.30-$32.25 horizontal resistance breakout now seems to protect the immediate downside ahead of the $32.00 level. This is followed by the $31.80 support, below which XAG/USD could drop to the $31.25-$31.20 region before dropping to the 100-day EMA, currently pegged near the $31.10-$31.00 region. Some follow-through selling below last week’s swing low, around the $30.80 area, will shift the bias in favour of bearish traders.
Source: FXStreet
