Silver Price Forecast: XAG/USD climbs above $36.00, gains more than 1%

• Silver consolidates for a second day within $36.00-$36.60 despite positive market sentiment.
• RSI hints at bullish continuation, but no new highs since June 18 peak at $37.31.
• Break below $36.00 risks pullback toward $35.00 and 50-day SMA at $34.24.

The silver price printed solid gains on Wednesday, up 1.40%, yet it remains consolidating within the $36.00-$36.60 range for the second consecutive day. A positive market mood and broad US Dollar strength capped the grey metal's advance.

XAG/USD Price Forecast: Technical Outlook

From a technical standpoint, XAG/USD remains upward biased, even though it has failed to print a new higher high since June 18, when Silver hit a yearly peak of $37.31. At the same time, the latest cycle low reached on June 23 at $35.82, remains respected. This, along with bulls gathering momentum as portrayed by the Relative Strength Index (RSI), suggests further upside is expected.

With that said, the first resistance level for XAG/USD is $37.00. If surpassed, the next stop would be the yearly peak of $37.31, ahead of testing the February 29, 2012, peak at $37.49. A breach of the latter will expose $38.00

On the other hand, Silver could take a negative turn if the spot price drops below $36.00, paving the way for a test of $35.82. Once hurdled, the next stop would be $35.00, before challenging the 50-day Simple Moving Average (SMA) at $34.24.

XAG/USD Price Chart - Daily