Silver Price Forecast: XAG/USD hovers near $32.30 as USD extends losses

• XAG/USD stuck in $31.50-$33.00 range; buyers eye 50-day SMA at $32.73 to regain momentum.
• Moody's cuts US debt rating to Aa1; DXY drops 0.60% to 100.36, boosting silver's appeal.
• Key support seen at 100-day SMA near $31.91; breakout or breakdown needed for trend clarity.

Silver price registers modest gains of 0.20% on Monday as US Treasury bond yields edge lower and the US dollar loses ground, as depicted by the US Dollar Index (DXY). The XAG/USD trades at $32.33 after bouncing off daily lows of $32.24.

The DXY, which tracks the dollar's performance against a basket of currencies, drops 0.60% to 100.36. Moody's downgrade to US government debt from AAA negative to AA1 stable triggered a US Dollar sell-off, even though US Treasury Secretary Bessent disregarded the news.

XAG/USD Price Forecast: Technical outlook

Consolidation is the name of the game for Silver prices, with neither buyers nor sellers able to clear the top and bottom of the $31.50-$33.00 range.

For buyers to regain control they must clear the 50-day Simple Moving Average (SMA) at $32.73. If surpassed, the next stop would be $33.00, followed by the next cycle high at $33.29, the May 13 peak.

On the downside, the 100-day SMA at $31.91 is the first support level after the strong bounce on May 15.

XAG/USD Price Chart - Daily