Silver Price Forecast: XAG/USD looks to build on momentum beyond 100-day SMA/$31.00

• 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) gains positive traction for the third consecutive day and climbs to its highest level since December 13 during the first half of the European session. The white metal currently trades around the $31.00 mark, with bulls now awaiting a move beyond the 100-day Simple Moving Average (SMA) before placing fresh bets.

Meanwhile, technical indicators on the daily chart have just started gaining positive traction and support prospects for an eventual breakout through the said barrier. The subsequent short-covering rally has the potential to lift the XAG/USD towards the next relevant hurdle near the $31.45-$31.50 area en route to the $32.00 mark and the December monthly swing high, around the $32.30 region. 

Some follow-through buying will suggest that the corrective decline from a multi-year peak touched in October 2024 has run its course and pave the way for additional gains. The XAG/USD might then climb further towards the $32.75-$32.80 region before aiming to reclaim the $33.00 mark for the first time since early November.

On the flip side, the $30.70-$30.65 area now seems to protect the immediate downside. Any further pullback could be seen as a buying opportunity and remain limited near the 200-day SMA, currently pegged just ahead of the $30.00 psychological mark. A convincing break below the latter, however, could make the XAG/USD vulnerable to retesting the weekly swing low, around the $29.70 region touched on Monday.

Silver daily chart