• Sun. Feb 16th, 2025

Silver Price Outlook: XAG/USD Approaches $34.00, Yet Stays Below Multi-Year High

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  • The fund has gained significantly after pulling back overnight from a 12-year high.
  • A move above $34.25-34.30 is needed to support hopes of more gains.
  • A drop could attract the hunters and hold the price between $32.75 and $32.65.

Silver (XAG/USD) attracted some buyers during Thursday’s Asian session and now appears to have halted its downward correction to the $34.85-$34.90 range, its highest level this week since October 2012. The white metal is currently trading below $34.00, up more than 0.50% on the day.

From a broader perspective, the recent strengthening above the $32.65-$32.75 supply area is seen as a new breakout point for bullish traders. Also, the oscillators on the daily chart remain in a good place, suggesting that at least for XAG/USD, the path of resistance is on the side. However, the inconsistency in this week’s short-term uptrend channel extension from the August lows calls for caution.

Therefore, it is necessary to carefully wait for some follow-on buying and sustained activity above the immediate impact of $34.25 to $34.30 before breaking out for more gains. XAG/USD could continue to gain momentum and repeat its attempt to break above the psychological $35.00 barrier. This momentum could continue and carry the stock to the October 2012 highs of $35.35 to $35.40.

On the other hand, the $33.45-$33.40 range or Wednesday’s weekly low could prevent immediate downside moves ahead of a $33.00 round. Further declines will attract some buyers, which will limit XAG/USD’s decline near the resistance reversal support from $32.75 to $32.65. However, some subsequent sell-offs could change the market’s bias toward bears and lead to further declines.