- XAG/USD slips to $31.13, with downside risks growing
- Silver fails to hold above $33.00, triggering consolidation and selling pressure.
- Price tests 100-day SMA at $31.20; next key support at 50-day SMA of $30.89.
- Break below $30.89 could expose 200-day SMA at $30.47 and January low of $29.70.
Silver ended the week on a lower note, down almost 4%, as traders booked profits amid US recession jitters following the release of crucial US data. At the time of writing, the XAG/USD trades at $31.13, down 0.32%.
XAG/USD Price Forecast: Technical outlook
The grey metal had shown signs of consolidation after failing to decisively clear the $33.00 on a daily closing basis, which could’ve exacerbated a rally towards the $34.00 figure. Instead, XAG/USD spot price cleared the 100-day Simple Moving Average (SMA) at $31.20, opening the door to test the 50-day SMA at $30.89.
Although bears pushed prices lower, buyers reclaimed $31.00. Nevertheless, the Relative Strength Index (RSI) shows sellers are gathering momentum.
Therefore, XAG/USD’s first support would be the 50-day SMA at $30.89 on further weakness. A breach of the latter will expose the 200-day SMA at $30.47. If sellers conquer those two levels, the trend shifts downwards, and bears would be poised to challenge the January 27 daily through at $29.70.
XAG/USD Price Chart – Daily
