Silver Price Forecast: XAG/USD dips below $36.50 on US Dollar strength

NEW YORK (June 19) Silver price retreats on Thursday after back-to-back bearish days, as investors seeking safety buy the US Dollar (USD), pushing the US Dollar Index (DXY) to a six-day high of 99.15. Rising tensions in the Middle East grow as the US could be dragged into the conflict. Currently, XAG/USD is trading at $36.37, down nearly 1%.

XAG/USD Price Forecast: Technical outlook

Silver prices remain upward biased, despite retreating to current levels after reaching a multi-year high of $37.32 on Wednesday. The gray metal hit a low around $36.21; since then, it has recovered, but traders are facing strong resistance at $36.50.

The Relative Strength Index (RSI) indicates that buyer momentum is fading, suggesting that the path of least resistance is downward in the near term.

With that said, the first support level for XAG/USD would be the $36.00 figure. On further strength, sellers could challenge Silver’s bullishness if they drag prices below the June 12 swing low of $35.46, which clears the path to test the October 30, 2024, high turned support at $34.86.

On the other hand, if XAG/USD prints a daily close above $36.50, the following key resistance levels would be $37.00 and the year-to-date high of $37.32.

FXStreet