Silver Price Forecast: XAG/USD skyrockets as buyers eye $33.00

• Silver surges past $32.00, driven by falling US Treasury yields, with prices up 2.26% during the North American session.
• The RSI indicates growing bullish momentum, with key resistance levels at $32.95 and $33.00 in sight.
• A pullback below $32.00 could see support at $31.32, with stronger backing around the 50-DMA at $30.13.

Silver's price skyrocketed during the North American session, sponsored by falling US Treasury bond yields. Even though traders trimmed bets that the Federal Reserve would ease policy less aggressively than expected, precious metals extended their gains. The XAG/USD trades at $32.33, up over 2.26%.

XAG/USD Price Forecast: Technical outlook

Silver’s price uptrend remains intact, at the brisk of registering a yearly record high. Earlier in the session, XAG/USD cleared the $32.00 psychological barrier and has extended its gains past the $32.50 area.

The Relative Strength Index (RSI) is bullish, aiming higher, indicating buyers are gathering steam.

 Given the backdrop, the XAG/USD key resistance levels would be the year-to-date (YTD) high at $32.95, followed by the $33.00 mark. Once it is exceeded, the next stop would be October 1, 2012, peaking at $35.40.

Conversely, if XAG/USD retreats below $32.00, the first support would be the October 17 swing low of $31.32, followed by the confluence of the October 8 low and the 50-day moving average (DMA) at $30.13

XAG/USD Price Action – Daily Chart