Silver Price Forecast: XAG/USD rallies over 3.50% above $27.00

• Silver trades at $27.49, rising over 3.50% after reclaiming the $27.00 level.
• Path of least resistance remains bearish; below $27.00 targets $26.45 and $26.11 support levels.
• Above $27.56, resistance levels are $28.00 and the August 5 high at $28.67.

Silver price surged on Thursday and gained over 3.50% as traders reclaimed the $27.00 figure although strong US data, bolstered the Greenback. Despite that, the XAG/USD bounced off weekly lows of $26.45 and hit a new weekly high before stabilizing at the current spot price. Silver trades at $27.49 as Friday’s Asian session begins.

XAG/USD Price Forecast: Technical outlook

Silver prices climbed above $27.00 yet remain below the 100- and 50-day moving averages (DMAs) at $28.76 and $29.79, hinting that sellers are in control. The Relative Strength Index (RSI), which remains bearish, further confirms this.

Hence, the path of least resistance is tilted to the downside. if XAG/USD drops below $27.00, the next support would be the weekly low of $26.45. On further losses, the 200-DMA at $26.11 emerges as the next support, followed by the psychological $26.00 figure.  

Conversely, if XAG/USD buyers reclaim $27.56, the next resistance would be the $28.00 mark ahead of the August 5 high at $28.67.

XAG/USD Price Action – Daily Chart