XAG/USD Bulls Eye Breakout as Silver Nears Key Resistance

Silver (XAG/USD) remains bullish, holding above $31.50 but facing resistance at $31.70-$31.75. A breakout could push prices toward $32 and beyond, while key support remains at $31.00.

XAG/USD Holds Gains but Struggles Near $31.70 Resistance

Silver (XAG/USD) continues its upward momentum for the second consecutive session, trading above mid-$31.00s during the European session on Tuesday. Despite the bullish sentiment, the metal remains below the critical $31.70-$31.75 resistance zone, which it tested on Monday.

XAG/USD Bulls Look for Confirmation Above $31.75

From a technical standpoint, silver’s breakout above $31.00 last week was a key signal for further gains. This level aligns with the 38.2% Fibonacci retracement of the October-December decline and the 100-day Simple Moving Average (SMA), reinforcing its significance. Additionally, daily chart oscillators continue gaining positive momentum, supporting a bullish outlook for XAG/USD.

However, silver must break decisively above the $31.70-$31.75 barrier to confirm further upside. If this level is cleared, XAG/USD could target $32.00, followed by the next resistance in the $32.30-$32.40 range, which aligns with the 61.8% Fibonacci retracement. A continued rally could bring the $33.00 mark into focus.

On the downside, the $31.10-$31.00 zone, previously a resistance level, now acts as immediate support. A drop below this range could accelerate selling pressure, potentially driving silver toward $30.25. Further losses might expose the psychological $30.00 level, with a decisive break below leading to $29.55 and even $29.00 in a deeper correction.

Silver Outlook: Bulls in Control but Await Breakout

While silver remains in a strong uptrend, traders are watching for a breakout beyond $31.75 to confirm further gains. With technical indicators favoring the bulls, the near-term outlook appears positive, and support has been provided at $31.00 holds. A break below this level, however, could signal a shift in momentum, bringing lower price targets into play.

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