Silver has been rising again after bouncing back from a recent drop. It hit a new daily high in the $33.25-$33.30 range during early European trading. Buyers stepping in might push the price above this week’s resistance point, breaking out of a month-long downward trend. Indicators show gaining strength, suggesting silver could rise further soon. If silver breaks past the $33.65-$33.70 resistance, it could reach the $34.00 level, and possibly even the year-to-date high around $34.55-$34.60. On the other hand, if the price dips below $32.00, it could create a buying opportunity, stabilizing around $32.60. If there’s a significant drop, the 100-day Simple Moving Average just over $32.00 may offer support. A continued fall could shift momentum toward sellers, potentially driving prices down to $31.40 within the trend channel. Silver’s price is influenced by its industrial demand, safe-haven status, geopolitical events, and the value of the US Dollar. Silver often follows gold’s movements, and the Gold/Silver ratio helps traders compare their prices. The recent bounce in silver prices, after a slight pullback, sparked more buying interest. It reached an intraday high near $33.30 early in Europe, testing levels that marked the upper limit of a downward trend seen over the last month. What we’re seeing now is more than just a regular rebound; it likely stems from renewed interest at lower prices, hinting at the broader trend re-emerging. Indicators like the Relative Strength Index and moving average convergence show strength, indicating that momentum is still alive. A move above this week’s high near $33.70 would break a resistance level that has held since mid-May. This could lead to buying interest targeting $34.00, and if positive sentiment continues, it may push towards the $34.55-$34.60 range, which capped prices earlier in the year. If the price struggles to break resistance, strong demand may still be waiting. Key levels of interest are between $32.60 and $32.00. Just below these, the 100-day moving average is around $32.00, offering a layer of technical support that has drawn short-term buyers in the past. If sellers gain momentum below this point, further declines toward $31.40 could occur, aligning with the lower limits of the trend channel formed in May. This would not be surprising, especially if overall risk appetite changes or the dollar continues to strengthen. It’s also important to note that market participants respond to global factors like central bank policies, inflation data, geopolitical uncertainty, and the dollar’s strength—all impacting daily valuations. Silver’s dual role as both a commodity and a safe-haven asset means it doesn’t always move in sync with gold, but the Gold/Silver ratio can still provide essential insights. We’ve been using that ratio to assess strength, and currently, it indicates a balance. This neutrality suggests that short-term price movements will hinge more on specific commodity flows and technical signals rather than wider macroeconomic factors. So, it’s crucial to keep an eye on specific price levels—especially how the breakout attempt at $33.70 plays out and if the $32.00 support level gets challenged. Monitoring these aspects will help reveal if the current upward momentum is sustainable.

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