Silver Price Analysis: XAG/USD struggles at $32.00, retreats as US yields rise

• Silver fell 0.85%, retreating from a daily peak of $32.26, pressured by rising US Treasury yields.
• XAG/USD must decisively break above $32.00 for a bullish continuation towards the yearly high of $32.51.
• If it fails to stay above $32.00, there is a risk of a drop towards $31.44, with $31.00 as key support.

Silver price retreated after matching the September 24 daily peak of $32.26 and dropped below the $32.00 figure, losing over 0.85%, weighed down by higher US Treasury yields. Moreover, a recovery in the US Dollar and investors’ reluctance to push up prices of the grey metal kept the XAG/USD at familiar levels.

XAG/USD Price Forecast: Technical Outlook

The bullish trend in Silver remains, but the price action suggests that buyers are struggling to keep the spot price above the $32.00 mark. During the year, XAG/USD has broken the $32.00 barrier eight times, but after that, the non-performing metal fell.

For a bullish continuation, XAG/USD needs to decisively break above the $32.00 mark. After that, traders need to test the yearly (YTD) high at $32.51, followed by the $33.00 mark. With further strength, XAG/USD could target the October 1, 2012 peak at $35.40.

Conversely, if XAG/USD drops below $32.00, the next support would be the September 20 daily high at $31.44 before testing $31.00.

XAG/USD Price Action – Daily Chart