Silver Price Forecast: XAG/USD Dropped Below $31.50, Weighed Down By US Dollar Strength

By Christian Borjon Valencia of FX Street

Editor • Nov 9, 2024 at 3:00 PM EST

Silver retreated from the two-day high of $32.00 on Friday and tumbled below the 50-day Simple Moving Average (SMA) at $31.37 late in the North American session. This was weighed down by a strong US dollar underpinned.

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Silver traded below 50-day SMA at $31.37; $30.84 support is key for preventing a deeper pullback.
Bearish momentum persisted with the RSI in seller’s territory, favoring near-term downside.
A close above the $31.50 level could be necessary for bullish recovery, targeting the $31.75 mark and potentially the $32.00 level.

Silver retreated from the two-day high of $32.00 on Friday and tumbled below the 50-day Simple Moving Average (SMA) at $31.37 late in the North American session. This was weighed down by a strong US dollar underpinned by former President Donald Trump’s victory. At the time of writing, the XAG/USD was seen trading at around $31.29, down approximately 2.29%.

XAG/USD Price Forecast: Technical Outlook

Silver's price uptrend remained in play despite posting solid losses. The fall of US Treasury yields kept the grey metal from falling further, but a decisive break below the Nov. 6 low of $30.84 could exacerbate a deeper pullback. In that outcome, the next support would be the 100-day SMA at $30.27, followed by the Sept. 5 high turned support at the $29.17 level.

For a bullish resumption, the XAG/USD currency cross must close above the $31.50 area in the coming days. This could pave the way to challenge the July 11 high at the $31.75 mark. A breach of the latter would expose the $32.00 figure, followed by May’s 20 peak at $32.51.

Momentum appears to be bearish in the near-term, as shown by the Relative Strength Index (RSI), which breached its neutral line into the seller's area.

XAG/USD Daily Price Chart

(Click on image to enlarge)

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