Silver prices experienced a slight pullback of 0.32% after reaching a four-day high of $33.92, with XAG/USD trading at $33.60 at the time of writing. The retreat was largely driven by the strength of the US Dollar, which posted solid gains during the session.
XAG/USD Price Forecast: Technical Outlook
After a strong rally on Tuesday, Silver struggled to break the $34.00 mark, which led to a pullback as sellers took control. This capped the metal’s advance, leaving it shy of challenging the yearly peak near $34.23.
However, momentum still favors further upside for XAG/USD, as indicated by the Relative Strength Index (RSI), which is on the verge of surpassing its previous peak. This suggests that short-term upside remains likely.
The first resistance level for XAG/USD is the March 26 high of $33.92. If this level is surpassed, the next target will be the $34.00 mark, followed by the October monthly peak at $34.86.
On the downside, if XAG/USD falls below $33.00, immediate support is seen at the March 21 low of $32.66. A break below this level could see Silver testing the 50-day Simple Moving Average (SMA) at $32.04.
