Silver bulls have upper hand near $34, below year peak

Silver struggles to capitalise on the overnight bounce from sub-$34.00 levels and oscillates in a narrow trading band during the Asian session on Wednesday.

XAGUSD currently hovers around $34.50, nearly unchanged for the day, though it remains close to the year-to-date peak seen on Monday.

From a technical perspective, this week’s breakout through the $33.80 barrier, or the top boundary of a multi-week-old range, was seen as a key trigger for bullish traders.

Moreover, oscillators on the daily chart are holding comfortably in positive territory and are still away from being in the overbought zone. This, in turn, suggests that the path of least resistance for the white metal is to the upside and backs the case for a further near-term appreciating move.

Some follow-through buying beyond the $34.8-34.90 region, or the YTD top and a twelve-year high touched in October 2024, will reaffirm the constructive outlook and pave the way for additional gains.

XAGUSD might then accelerate the momentum towards the next relevant hurdle near $35.66, or March 2012 swing high, before aiming to reclaim the $36.00 mark for the first time since February 2012.