Silver Price Forecast: XAG/USD sinks below $32.00 on rising US yields

• Silver tumbles 1.60%, trading at $31.67 as rising US yields dampen demand for the precious metal.
• Technical outlook suggests a possible 'double top' formation, with the RSI pointing toward further downside.
• Key support lies at $31.50, with potential targets at the September 30 low of $30.89 and the 100-DMA at $29.74.
• A break above $32.00 could lead to a test of the YTD high at $32.95.

Silver price reversed course on Monday, tumbled over 1.60% as rising US yields dented appetite for the precious metal, which failed to cling to $32.00 a troy ounce. At the time of writing, the XAG/USD trades at $31.67 after reaching a daily peak of $32.33.

XAG/USD Price Forecast: Technical outlook

Silver price remains upward biased, though it appears to form a 'double top' chart pattern, which could open the door for a reversal.

From a momentum standpoint, the Relative Strength Index (RSI) aims downward toward its neutral line, which could lead to further downside.

If XAG/USD drops beneath $31.50, sellers' next target will be the September 30 cycle low of $30.89. Further weakness will push prices toward the 100-day moving average (DMA) at $29.74, followed by the 50-DMA at $29.49.

Conversely, if bulls push XAG/USD above $32.00, the year-to-date (YTD) high could be tested at $32.95.

XAG/USD Price Action - Daily Chart