Silver Price Forecast: XAG pullback puts $63.50 in focus

Silver price reverses its course, drops some 2.70% on Tuesday, even though US Treasury yields and the Greenback remained steady, amid news that if the US does not comply with Iran’s demands, the Strait of Hormuz would remain closed. The XAG/USD trades at $64.77, after hitting a daily high of $66.49.

XAG/USD Price Forecast: Technical outlook

From a technical perspective, the white metal is neutral to upward-biased after it reclaimed the 50-day Simple Moving Average (SMA). Nevertheless, the market structure of lower highs and lower lows is intact, at risk of being broken, once Silver clears the June 16 swing high of $71.19

Momentum revealed that buyers continue in control as depicted in the Relative Strength Index (RSI). But a dip in the index suggests that consolidation lies ahead.

For a bullish continuation, the XAG/USD must surpass the 100-day SMA at $68.93. Above lies the $70.00 psychological figure, followed by the June 16 high at $71.19, ahead of the 200-day SMA at $71.39.

On the flip side, if XAG/USD retreats below the August 10 daily low of $63.28 it opens the door for a deeper pullback. The next area of interest would be the 50-day SMA at $61.76 ahead of the $60.00 milestone.

XAG/USD Price Chart – Daily