Silver Price Forecast: XAG/USD surges as Fed rate cut spurs rally toward $31.00

• Silver price breaks above a key resistance trendline, with a move toward $31.00 in sight after strong gains.
• Next resistance levels include the July 11 high at $31.75 and the May 29 peak at $32.29, with YTD high at $32.51 on the horizon.
• A bearish reversal would require a break below the September 18 low of $29.71, with further support at the 100-DMA of $29.43.

Silver climbed sharply during Thursday's North American session, printing solid gains of over 2%, and closed at around $30.77. Investors, seeking risk and ditching the US Dollar, cheered the Federal Reserve's rate cut.

Market sentiment remains upbeat, with Wall Street's main index, the S&P 500, climbing to a record high. Meanwhile, the precious metals segment, led by Gold and Silver, surged sharply while the Greenback dropped over 0.30%, according to the US Dollar Index (DXY) at 100.63.

XAG/USD Price Forecast:  Technical outlook

Silver price is threatening to decisively clear a downslope resistance trendline drawn from May 20 highs passing through $30.67. If this trendline is broken decisively, it will open the way to challenging $31.00.

In that outcome, XAG/USD next resistance will be the July 11 swing high at $31.75, followed by the May 29 peak at $32.29. On further strength, the year-to-date (YTD) high at $32.51 will be up for grabs.

Conversely, bears would need to push the grey's metal price below the September 18 swing low of $29.71, ahead of testing the 100-day moving average (DMA) at $29.43

XAG/USD Price Action - Daily Chart