Silver Price Analysis: XAG/USD pulls back from two-week peak, downside seems limited

• Silver snaps a five-day winning streak to a nearly two-week top, albeit lacks follow-through.
• The technical setup favors bullish traders and supports prospects for further near-term gains.
• A convincing break below the $28.80-70 area is needed to negate the constructive outlook.

Silver (XAG/USD) ticks lower during the Asian session on Thursday and erodes a part of the previous day's strong gains to the $30.65-$30.70 area, or its highest level in nearly two weeks. The white metal currently trades around the $30.40 region, down 0.35% for the day, and for now, seems to have snapped a five-day winning streak, though the near-term technical setup seems tilted in favor of bullish traders.

The XAG/USD recently showed some resilience below the $28.80-$28.70 horizontal resistance breakpoint-turned-support. The subsequent move beyond the $29.70-$29.75 hurdle and the $30.00 psychological mark was seen as a fresh trigger for bullish traders. Moreover, oscillators on the daily chart have just started gaining positive traction and suggest that the path of least resistance for the metal is to the upside. 

Hence, any further decline is more likely to attract fresh buyers near the $30.00 round figure, which should limit the downside near the $29.75-$29.70 resistance-turned-support. The latter should act as a pivotal point, which if broken decisively might prompt some technical selling and accelerate the fall towards the $29.10-$29.00 region before the XAG/USD eventually drops to the $28.80-$28.70 key support zone. 

On the flip side, some follow-through buying beyond the overnight swing high, around the $30.70 region, has the potential to lift the XAG/USD beyond the $31.00 mark, towards the next relevant hurdle near the $31.50-$31.55 area. The upward trajectory could extend further towards the $32.00 round figure en route to the $32.50 region, or over a one-decade peak touched in May.

Silver daily chart