Silver is attempting a comeback after falling more than 15% in just one and a half months. Despite the selloff, the medium-term uptrend remains intact, and the downside momentum appears to be dissipating. 

Precious metals are in a corrective phase. Before the U.S. election, they priced in a potential Trump win and surged significantly. After the election, it became a “buy the rumor, sell the news” market for both gold and silver. Silver, however, was hit much harder than gold, likely due to the sluggish performance of the manufacturing sector. The gold-to-silver ratio even reached 87.50, one standard deviation above its average. 

However, stronger China Manufacturing PMI data and ISM Manufacturing figures from the U.S. have provided silver with enough support to regain some ground against gold. 

(XAGUSD Daily Chart) 

Unlike gold, silver positions, particularly hedge fund positions—are less crowded relative to gold. This could fuel the next wave of buying, but first, silver must hold its current trend. If the trend fails and key support near 30 breaks down, silver might drop to 28.40 initially, and potentially below 27, depending on incoming data and the geopolitical situation. 

On the upside, the first resistance is at 31.50. However, the real challenge lies in the 32–32.70 zone. A clear breakout above this resistance could provide the momentum needed for silver to surpass its previous high and aim for levels above 36.