Silver Price Analysis: XAG/USD trades with negative bias above mid-$32.00s; bullish bias remains

Silver drifts lower on Thursday and snaps a three-day winning streak to over a one-week high.

The technical setup favors bulls and supports prospects for the emergence of some dip-buying. 

A convincing break and acceptance below the 100-day EMA would negate the positive outlook.

Silver (XAG/USD) attracts some sellers during the Asian session on Thursday and erodes a part of its weekly gains registered over the past three days. The white metal currently trades above mid-$32.00s, down 0.35% for the day, though the near-term bias seems tilted in favor of bullish traders and supports prospects for a further appreciating move.

From a technical perspective, the XAG/USD showed some resilience below the 100-day Exponential Moving Average (EMA) last Friday. Moreover, oscillators on the daily chart have again started gaining positive traction on the daily chart and validate the near-term constructive outlook for the commodity. Hence, a subsequent strength towards the $33.00 mark, en route to the February monthly swing high, around the $33.40 area, looks like a distinct possibility. 

The next relevant hurdle is pegged near the $33.60-$33.70 region, above which the XAG/USD could aim to reclaim the $34.00 round figure and climb further towards the $34.50-$34.55 zone. The momentum could extend further towards the highest level since October 2012, closer to the $35.00 psychological mark touched in October 2024. 

On the flip side, the $32.30-$32.25 horizontal resistance breakpoint now seems to protect the immediate downside ahead of the $32.00 mark. This is followed by the $31.80 support, below which the XAG/USD could fall to the $31.25-$31.20 region before dropping to the 100-day EMA, currently pegged near the $31.10-$31.00 area. Some follow-through selling below last week's swing low, around the $30.80 area, would shift the bias in favor of bearish traders.

Silver daily chart