Silver (XAG/USD) failed to sustain the previous day’s gains and fluctuated between modest increases and slight losses during the Asian session on Wednesday. The precious metal is currently trading around $31.25 per troy ounce, remaining nearly unchanged for the day and just below a fresh weekly peak achieved earlier.
From a technical standpoint, the recent breakout from a multi-day trading range suggests potential for further bullish momentum. Daily chart oscillators remain in positive territory, indicating that the path of least resistance for XAG/USD is upward. Consequently, any significant dips might still be viewed as buying opportunities, with downside risks appearing limited.
The $31.00 mark, which aligns with the 100-hour Simple Moving Average (SMA), now serves as a critical support level. A decisive break below this threshold could trigger technical selling, potentially driving XAG/USD down to the $30.75 level and further towards the $30.55-$30.50 range, which is expected to act as a strong horizontal support and a pivotal point for short-term traders.
Conversely, the immediate resistance is identified at the Asian session peak of around $31.45. A successful breach of this level could propel XAG/USD past an intermediate resistance near $31.75, aiming to reclaim the $32.00 mark for the first time since late May. Sustained buying pressure beyond this point could pave the way for additional gains, targeting the year-to-date peak around $32.50 reached in May.
