Silver Price Forecast: XAG/USD extends gains, buyers target $32.00

• Silver rises third day; capped below $32.00 amid high US Treasury yields.
• Momentum suggests more gains; resistance eyed at $32.17, May high at $32.51.
• Support at $31.37; break below could lead to retests of $30.76, October low $30.12.

Silver's price extended its gains to three straight days yet remains below the $32.00 figure as US Treasury yields cap the grey metal’s advance. This, along with a buoyant US Dollar, didn’t deter the precious metal from advancing higher, and it consolidated at around the higher bound of the $31.50/$31.90 range. The XAG/USD trades at $31.90, above its opening price by 0.80%.

XAG/USD Price Forecast: Technical outlook

After plunging almost vertically from a year-to-date (YTD) peak of $32.95 to $30.12 within three days, the non-yielding metal is now recovering, with buyers targeting a potential test of the $33.00 level.

Silver’s recovery from plunging almost vertically from a year-to-date (YTD) peak of $32.95 to $30.12 within three days continued on Thursday. Momentum hints at buyers gathering steam, as depicted by the Relative Strength Index (RSI). Hence, the XAG/USD path of least resistance is tilted to the upside.

That said, the first resistance would be the $32.00 figure, followed by the October 16 high at $32.17. Once those levels are surpassed, the next stop would be the May 20 swing high at $32.51 before challenging the YTD high at $32.95.

Conversely, if XAG/USD slips below $31.37, Silver could drop to the weekly low of $30.76. If surpassed, this would clear the path to challenge October’s 8 low of $30.12.

XAG/USD Price Action – Daily Chart