• Silver retreats further from its highest level since December 2012 touched on Friday.
• The recent repeated failures to find acceptance above $32.00 warrant caution for bulls.
• Any further slide to $31.65 could be seen as a buying opportunity and remain limited.

Silver (XAG/USD) kicks off the new week on a weaker note and extends Friday's late pullback from the vicinity of the $33.00 mark, or its highest level since December 2012. The white metal remains depressed around the $32.00 round figure during the first half of the European session, though the mixed technical setup warrants some caution before placing aggressive bearish bets.

The recent repeated failures to find acceptance above the $32.00 mark constitute the formation of a bearish multiple-tops pattern on the daily chart. That said, oscillators on the daily chart are holding comfortably in positive territory and support prospects for the emergence of some dip-buying near the $31.65 area. This should limit the downside for the XAG/USD near the $31.40-$31.35 horizontal support. 

The subsequent fall has the potential to drag the commodity towards the $31.00 mark. Some follow-through selling below last week's low, around the $30.90-$30.85 area, could make the XAG/USD vulnerable to accelerate the slide further towards the $30.40-$30.35 intermediate support en route to the $30.00 psychological mark and the 50-day Simple Moving Average (SMA), around the $29.55 zone.