Silver has seen an upward momentum after recovering from its recent pullback from its monthly peak. It has reached a fresh daily high in the $33.25-$33.30 range during early European trading.

Dip-buying might lead to a rise above this week’s top breakout of a descending channel that lasted nearly a month. Indicators support this by gaining traction, suggesting the possibility of further appreciation in the near term.

A breakthrough beyond the $33.65-70 resistance could allow silver to reclaim the $34.00 level, potentially moving towards the year-to-date high near $34.55-$34.60. Conversely, a drop below the $32.00 level remains an opportunity for buyers, potentially stabilising around the $32.60 level.

If the price falls significantly, the 100-day Simple Moving Average at just over $32.00 could provide support. Any sustained drop could shift momentum favouring sellers, possibly leading to a decline towards the $31.40 level within the trend channel.

Silver’s price movements often reflect its industrial demand and status as a safe-haven asset, influenced by various factors including geopolitical events and the US Dollar’s value. Silver usually follows gold’s movement, and the Gold/Silver ratio is a tool to measure their relative prices, offering insights for traders.

The recent rebound in silver prices, following a brief pullback, has stirred further buying momentum. Having jumped to an intraday high near $33.30 early in the European session, the metal is now testing levels that had marked the upper boundary of a declining trendline that defined much of the past month’s movement.

What’s happening here is not just a standard bounce; it’s a reaction likely triggered by renewed interest at discounted prices, with the broader trend emerging again. Indicators—such as Relative Strength Index and moving average convergence—are showing strength beneath the surface, giving more weight to the idea that momentum is not yet exhausted.

A push above this week’s high around $33.70 would not just be symbolic—it would breach an overhead threshold that has acted as a ceiling since mid-May. That could usher in buying enthusiasm targeting $34.00, and if sentiment remains aligned, it opens a path to test the $34.55-$34.60 region, which capped the rally earlier in the year.

If price fails to hold or gather the energy to clear resistance, there’s still likely to be demand waiting on the sidelines. Historical zones of interest lie between $32.60 and $32.00. Just beneath that, we see the 100-day moving average lining up—currently around $32.00—offering a layer of technical defence that has previously attracted short-term positioning.

Below that point, if sellers gain traction, it’s reasonable to expect further declines towards $31.40, aligning with the lower bounds of the trend channel that started forming in May. This wouldn’t be unexpected, particularly if broader risk appetite shifts or if the dollar continues to strengthen.

It’s not just about charts though. Market participants are reacting to global cues—central bank policy, inflation data, geopolitical uncertainty, and the shifting strength of the dollar are all feeding into daily valuations. Silver’s dual nature—part commodity, part safe-haven—means it doesn’t always move in lockstep with gold, but comparative analysis using the gold/silver ratio can still provide important context.

We’ve been using that ratio to gauge relative strength, and right now it’s not pointing to extremes. That neutrality could mean that directional bets will lean more on individual commodity flows and technical signals rather than broader macro triggers in the very short term.

So, this is a moment for watching specific price levels—particularly how the $33.70 breakout attempt unfolds and whether support around $32.00 gets tested. Reaction to these levels should give clues about whether the current upside strength is sustainable.