Silver Price Forecast: XAG/USD drops from multi-year highs above $39.00

• Silver retreats from $39.12 peak but maintains bullish long-term structure.
• RSI remains elevated, suggesting buyers still have technical control.
• Break below $37.31 may trigger deeper correction toward $36.69 and $36.00.

Silver price forms a 'shooting star' candle chart pattern amid a day in which precious metals were pressured as traders priced in initial risk-off sentiment. However, they faded the move, amid fears that the White House might backpedal, as they could reach trade agreements with Canada, the EU, and Mexico ahead of the August 1 deadline. The XAG/USD trades at 38.14, down 0.66%.

XAG/USD Price Forecast: Technical outlook

The grey metal is upward biased, despite falling below the $39.00 figure after reaching multi-year highs at $39.12. The Relative Strength Index (RSI) depicts that buyers are still in control, even though XAG/USD dipped toward $38.00.

For a bullish continuation, Silver traders need to push prices back above $38.50 and test the $39.00 figure. A breach of the latter would pave the way to refresh yearly highs.

Conversely, if Silver tumbles below the June 18 high of $37.31, expect further downside and a possible test of the 20-day Simple Moving Average (SMA) at $36.69. On further weakness, the $36.00 figure is up next.

XAG/USD Price Chart - Daily