30 Jan 2025

• Silver attracts buyers for the third straight day and climbs to over a one-month top.
• The technical setup favors bulls and supports prospects for further appreciation.
• Any corrective pullback could be seen as a buying opportunity and remain limited.
• Silver (XAG/USD) continues to exhibit positive momentum for the third consecutive day, reaching its highest point since December 13 during the early part of the European trading session. The precious metal is currently trading near the $31.00 level, with market participants now looking for a breakthrough above the 100-day Simple Moving Average (SMA) to initiate new positions.
  
  In addition, the technical indicators on the daily chart have begun to show signs of positive movement, bolstering the outlook for a potential breakout above this key resistance level. A subsequent short-covering rally could propel the XAG/USD towards the next significant resistance zone around $31.45-$31.50, paving the way towards the $32.00 level and the December monthly swing high, which is approximately in the $32.30 range.
• Some follow-through buying activity may indicate that the corrective decline from the multi-year peak reached in October 2024 has concluded, potentially setting the stage for further gains. Consequently, the XAG/USD could advance towards the $32.75-$32.80 range before attempting to reclaim the $33.00 level for the first time since early November.
  
  Conversely, the $30.70-$30.65 zone appears to provide immediate support against downside movements. Any additional pullback may be perceived as a buying opportunity, likely to remain constrained near the 200-day simple moving average, which is currently positioned just above the psychological $30.00 threshold. However, a decisive breach below this level could expose the XAG/USD to a retest of the weekly swing low, approximately around the $29.70 level observed on Monday.