Silver Price Forecast: XAG/USD dips below 100-day SMA, eyes on $30.00

• Silver struggles near 100-day SMA, with downside potential towards $30.00 and lower supports.
• Technical outlook suggests further weakness, with a key support at $30.18 and the 200-day SMA at $28.63 in focus.
• Recovery above $31.00 could challenge resistance at the 50-day SMA and extend towards $32.00.

Silver price drops below $30.50 for the second consecutive session, prints losses of over 0.90% following a tempered US inflation report. The US CPI came as expected, though he hinted that disinflation has stalled. The XAG/USD trades at $30.40, set to end the session lower.

XAG/USD Price Forecast: Technical outlook

Silver price consolidated during the last two days at around the 100-day Simple Moving Average (SMA) at $30.31. However, the mid-term bias is tilted to the downside, and once bears push prices below August's 26 high turned support at $30.18, they will test the psychological $30.00 mark. A breach of the latter will expose the 200-day SMA at $28.63, followed by the September 6 swing low of $27.69.

If Silver moves back above $31.00, this could pave the way for challenging the 50-day SMA at $31.51. Once surpassed, XAG/USD's next resistance would be $32.00.

Oscillators like the Relative Strength Index (RSI) hint that further XAG/USD's downside is seen, as RSI remains shy of being oversold.

XAG/USD Price Chart - Daily