Silver Price Forecast: XAG/USD surges above $31.00 as US yields fall

• Silver rebounds to reclaim the $31.00 mark, buoyed by a drop in US Treasury yields and ongoing market dynamics.
• Technical landscape shows resistance at the 50-day SMA of $31.75, with potential targets extending to $32.00 and $33.00.
• Key support levels identified at $31.00 and $30.00, with further downside protection near the November low of $29.68.

Silver price recovered some ground on Friday and reclaimed the $31.00 a troy ounce, boosted by falling US Treasury bond yields and despite a firm US Dollar. At the time of writing, the XAG/USD trades at $31.28, a gain of over 1.62%.

XAG/USD Price Forecast: Technical outlook

The grey metal has consolidated within the $30.50-$31.50 range for the last four days, capped on the upside by the 50-day Simple Moving Average (SMA) at $31.75. If Silver extends its rally above the latter, the $32.00 psychological figure would be up next. Once cleared, further upside is seen, with the $33.00 mark up next, ahead of the October 29 peak at $34.54.

For a bearish continuation, XAG/USD first support would be $31.00. Once surpassed, the next demand zone would be $30.00, followed by the November 14 low of $29.68. On further weakness, the next stop would be the 200-day Simple Moving Average (SMA) at $28.91.

Oscillators such as the Relative Strength Index (RSI) suggest buyers are gathering steam, yet the RSI is still below its neutral line. Hence, the bias is neutral-bullish.

XAG/USD Price Chart - Daily