Silver (XAG/USD) oscillates in a narrow trading band following the previous day's good two-way price moves, though it holds above the $34.00 mark through the Asian session on Tuesday. Moreover, the white metal remains close to a multi-month high, around the $34.60 area touched last Friday.

Looking at the broader picture, the recent strong positive move witnessed since the beginning of 2025 has been along an upward-sloping channel. This points to a well-established short-term uptrend. Furthermore, oscillators on the daily chart are holding comfortably in positive territory and are still away from being in the overbought zone. This, in turn, suggests that the path of least resistance for the XAG/USD is to the upside.

Hence, a move beyond the year-to-date high around the $34.60 area, towards retesting a multi-year peak near the $34.85 region touched in October, looks like a distinct possibility. The latter now coincides with the top boundary of the aforementioned trend channel, which if cleared decisively will be seen as a fresh trigger for bulls and set the stage for a further near-term appreciating move for the XAG/USD.

On the flip side, any corrective pullback might continue to attract some dip-buyers and remain limited near the overnight swing low, around mid-$33.00s. A convincing break below, however, might prompt some technical selling and drag the XAG/USD to the $33.00 round figure, en route to the $32.65 region and the $32.00 mark. The latter represents the lower end of the ascending trend channel and should act as a strong base for the commodity.

Source: FXStreet