Silver Price Forecast: XAG/USD rebounds and reclaims $31.50

• Silver rises 0.39%, trading at $31.82 as buyers push prices above the opening level, reclaiming $31.50.
• RSI hints at consolidation ahead, with a break above $32.30 needed to challenge the YTD high of $32.71.
• A fall below $31.00 could lead to a deeper pullback, with key support levels at $30.50 and the 100-DMA at $29.74.

Silver price recovered some ground on Wednesday, advanced some 0.39%, and reclaimed the $31.50 figure as buyers stepped in and pushed the grey's metal price above its opening price. Higher US Treasury bond yields capped its advance, yet XAG/USD trades at $31.82 as Thursday's Asian session begins.

XAG/USD Price Forecast: Technical outlook

Silver price has printed back-to-back bullish days, yet it failed to surpass the $32.00 figure, exposing the grey metal to selling pressure. The Relative Strength Index (RSI) hints that buyers remain in control, but it has turned flat, indicating that consolidation lies ahead.

If XAG/USD clears the October 2 peak of $32.30, it will resume its uptrend and challenge the year-to-date (YTD) high of $32.71. A breach of the latter will push Silver to $33.00 before testing on October 1, 2012, high at $35.40.

On the other hand, if XAG/USD dives beneath the October 2 daily low of $31.00, this would sponsor a leg-down to the psychological $30.50 figure, followed by the 100-day moving average (DMA) at $29.74, ahead of the 50-DMA at $29.32.

XAG/USD Price Action - Daily Chart