Silver (XAG/USD) saw marginal gains in the Asian session on Thursday, rebounding from a recent dip to hover around the $30.40 mark. This uptick follows a retreat from a two-week low near the psychological support level at $30.00 observed in the prior session. Despite today’s modest increase of approximately 0.35%, market sentiment remains tepid with a lack of strong bullish momentum.
Technically, the failure to sustain momentum above the $31.40 resistance zone, coupled with a recent breach of short-term trading range support, signals a potential shift in favor of bearish sentiment. However, caution is advised as neutral oscillators on the daily chart suggest a balanced market stance. Traders are advised to monitor price action closely, particularly for a sustained drop below the critical $30.00 mark, which could trigger further downside momentum.
In such a scenario, immediate support levels to watch include the $29.70 horizontal zone, followed by the $29.15 region. A decisive break below $29.00 may expose the June low of $28.60-$28.55, with potential further decline towards the 100-day Simple Moving Average (SMA) positioned near $28.00.
Conversely, any upward movement faces resistance near the $31.00 mark, with a sustained rally potentially targeting the $31.40 supply zone. Further bullish momentum beyond the recent monthly peak around $31.80 could propel XAG/USD towards challenging the year-to-date high in the mid-$32.00s, recorded back in May.
Investors and traders alike are advised to stay attuned to these technical levels and price dynamics, as they navigate the current volatility and potential future movements in the silver market.
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