- XAG/USD fell over 1% to $31.60 after hitting a yearly high of $32.71 earlier this week.
- If it fails to close above $31.75, silver may trade within the range of $31.00 to $31.70, potentially leading to further declines.
- A breakout above $32.00 could trigger a retest of the year-to-date high at $32.71, with $33.00 serving as the next significant resistance level.
Silver prices fell on Friday, closing down more than 1% after reaching a yearly high of $32.71 on September 26. The inability of buyers to maintain momentum above $32.00 contributed to the decline toward $31.60, although silver still recorded weekly gains of over 1.50%.
XAG/USD Price Forecast: Technical Outlook
Silver remains upward biased despite dipping to a four-day low of $31.37. However, a daily close below the July 13 peak of $31.75 could lead to trading within the range of $31.00 to $31.70.
The Relative Strength Index (RSI) indicates a bullish trend, but short-term selling pressure may push prices toward the September 23 low of $30.36. If the weakness continues, the next support level would be the 50-day moving average (DMA) at $29.64.
On the other hand, if XAG/USD manages to rise above $32.00, it could set the stage for a retest of the year-to-date high at $32.71, with $33.00 as the next resistance level before approaching the peak of $35.340 from October 1, 2012.
XAG/USD Price Action – Daily Chart
