Silver Price Forecast: XAG/USD rebound stalls above $33.00, keeps moving in range

LONDON (May 28) Silver prices (XAG/USD) are posting moderate losses on Wednesday, weighed by the upbeat market sentiment, which is undermining demand for safe assets, and a firmer US Dollar.

The Greenback is trading higher across the board, on the back of easing trade tensions, after Trump's decision to delay tariffs to Europe, and the upbeat Consumer Sentiment figures seen on Tuesday.

The risk-on mood offset the weak US Durable Goods Orders data and pushed debt concerns to the back seat, at least for now. The highlight today is the release of the minutes of the Fed’s May meeting that will provide further clues about the bank’s next steps.

Technical analysis: XAG/USD is in a bearish correction from $33.70

XAU USD was capped at the top of the last two months' trading range, at $33.70, and is now correcting lower. Last week’s lower high confirms the immediate bearish trend, although the support at the $32.80 area seems to be a strong one.

The pair is struggling to find acceptance above $33.35, and remains moving within Tuesday’s range. Resistance at $33.50 (May 23, 26, and 27 highs) is likely to hold bulls ahead of the mentioned horizontal channel’s top at $33.70.

On the downside, a bearish reaction below $32.80 would bring $32.15 into focus.

FXStreet