Silver Price Forecast: XAG/USD jumps to 3-week high as the Dollar sinks

• XAG/USD up 1.63% as US 10-year yields tumble due to rate-cut bets pressuring the Dollar.
• Price hits $38.65, clearing last higher-high; next resistance at $39.00, then YTD high of $39.53.
• Downside risks if $38.00 fails, with supports at $37.50 and $36.21.

Silver price rises over 1.63% on Wednesday, boosted by broad US Dollar weakness as traders had fully priced in a rate cut by the Federal Reserve at next month's meeting.

Consequently, US Treasury yields, which correlated inversely with XAG/USD, tumbled with the 10-year benchmark note, down five basis points at 4.236%. At the time of writing, the grey metal trades at $38.53, after bouncing off daily lows of $37.85.

XAG/USD Price Forecast: Technical Outlook

Silver price uptrend remains intact, hitting a three-week high of $38.65 with buyers clearing the last higher-high ahead of challenging the $39.00, with them eyeing the YTD peak of $39.53. From a price action standpoint, if those two levels are cleared, the grey metal could test $40.00 in the near term.

Momentum is bullish as depicted by the Relative Strength Index (RSI). Nevertheless, if something goes wrong, XAG/USD's drop below $38.00 could put buyers under stress, and bears could challenge the latest cycle low of $37.50, the August 12 low. If cleared, the next area of interest would be the July 31 swing low of $36.21.

XAG/USD Price Chart - Daily