Silver prices have recorded moderate gains on Thursday, rebounding from the support region at $32.60-32.70. However, the overall outlook remains uncertain as the price remains within recent ranges. The current market situation is not favorable as a US court has blocked Trump’s trade tariffs. While this could be positive for commodity trading, the strength of the US Dollar may limit any significant advances in XAG/USD.
In recent trading days, Silver has been unable to surpass its previous high of $33.70 and has been recording lower highs. The price action is forming a descending triangle pattern, which indicates the possibility of a downward trend. The immediate support lies at the $32.60-32.70 area, where buyers emerged on May 22 and today. If this area is breached, the next support levels are at the May 20 low of $32.15 and the May 1 and 15 lows around $31.70.
On the upside, if the triangle’s top at $33.35 is broken, this bearish view is invalidated, and the previous high of $33.70 becomes a key level to watch.