Silver Price Analysis: Retreats below $38.00 as US Dollar strength weighs on metals

• Silver retreats 1.90%, falling below $38.00 after broad US Dollar strength pressured metals.
• RSI remains in bullish territory, suggesting buyers still hold medium-term technical control.
• Break above $38.50 could open door to $39.00 retest, while drop under $37.50 risks deeper correction.

Silver price plunges over 1.90% on Monday as traders awaited a resolution from the White House regarding Gold tariffs. Although US President Donald Trump posted on Truth Social that Bullion would not be tariffed on August 11, broad US Dollar strength weighed on the grey's metal. XAG/USD trades at $37.60, virtually unchanged as the Asian session begins.

XAG/USD Price Forecast: Technical outlook

After posting a rally for five days, Silver faced its first red candle on Monday, which dragged the spot price below $38.00. Despite the pullback, the Relative Strength Index (RSI) shows that buyers are in charge, as the index remains bullish.

For a bullish continuation, XAGUSD needs to surpass $38.00, followed by a clear breach of the 20-day SMA at $38.05. The next area of interest would be the August 8 daily high of $38.47, ahead of $38.50. If those two levels are surpassed, expect a test of $39.00.

Conversely, if Silver tumbles below $37.50, a test of the 50-day SMA at $37.03 is on the cards. On further weakness, the next support would be July 31 swing low of $36.22

XAG/USD Price Chart - Daily