Silver Price Forecast: XAG/USD falls over 1.80% on profit-taking, risk aversion
Silver hits two-week low of $31.29 before bouncing above $31.50.
RSI signals bearish momentum, with key support at 100-day SMA of $31.20.
Upside potential if XAG/USD reclaims $32.00, targeting $32.48 and $33.00.
Silver prices plunged on Tuesday more than 1.80%, which witnessed the grey metal printing a daily peak of $32.48, before sliding below the $32.00 figure due to risk aversion and traders booking profits amidst uncertainty about US trade policies. The XAG/USD trades at $31.73 unchanged as Wednesday’s Asian session commences.
XAG/USD Price Forecast: Technical outlook
Despite printing a two-week low of $31.29, XAG/USD bounced near the 100-day Simple Moving Average (SMA) of $31.20, which if broken, would clear the path for bears to drive Silver prices toward the $30 handle. However, bulls emerged and drove the precious metal above $31.50, keeping them hopeful of re-testing the $32.00 figure.
Momentum shifted bearish as depicted by the Relative Strength Index (RSI) standing below 50, an indication that sellers are in charge. Therefore, further downside is seen.
On the other hand, if Silver climbs above $32.00, bulls can push prices towards February 25 high of $32.48. If cleared, they would remain in charge, poised to challenge $33.00.
XAG/USD Price Chart – Daily
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