Silver Price Forecast: XAG/USD rallies above $33.00 as USD slips

• Silver rallies over 1%, clearing $33.00 for the first time since April amid renewed safe-haven demand.
• Technical breakout confirmed, with XAG/USD surpassing the 50-day SMA and a key resistance trendline near $32.75.
• Momentum favors bulls, as RSI trends higher, signaling potential for further gains toward $33.50 and $34.00.
• Downside risk limited to $33.00 support; failure to hold could expose the 100-day SMA at $31.98.

Silver price soared on Tuesday, climbing past the $33.00 mark per troy ounce as the US Dollar weakened across the board. Uncertainty surrounding US trade policies, Moody's downgrade of US government debt, and the impending increase in the US budget deficit fueled demand for the safe-haven appeal of the gray metal.

XAG/USD Price Forecast: Technical outlook

From a technical perspective, Silver trades sideways, though slightly tilted to the upside. Buyers clearing the 50-day Simple Moving Average (SMA) at $32.75 opened the door to surpass the $33.00 mark as they eye a test of the $33.50 figure. It is worth noting that the impulse cleared a resistance trendline drawn from the April and May highs, which were broken at around $32.70/85, confirming the continuation of the trend.

The Relative Strength Index (RSI) favors buyers. Therefore, if the RSI continues to trend higher, it would confirm the continuation of the ongoing upward trend.

On the other hand, Silver's key support level is $33.00. A break below could send XAG/USD diving towards the 100-day SMA at $31.98, ahead of testing the 200-day SMA at $31.30.

XAG/USD Price Chart - Daily