XAG/USD rises above $33.00 amid weaker dollar

Silver prices surged on Tuesday, breaking through $33.00 an ounce as the U.S. dollar weakened broadly. Uncertainty surrounding U.S. trade policy, a Moody's downgrade of U.S. government debt and a looming increase in the U.S. budget deficit have driven demand for the safe-haven metal.

XAG/USD Price Prediction: Technical Outlook

From a technical perspective, silver prices are trading sideways with a slight bias to the upside. Buyers broke above the 50-day simple moving average at $32.75, opening the way for a move above $33.00 with the target of testing the $33.50 level. Notably, the momentum broke above the resistance trendline drawn from the April and May highs, which was breached at around $32.70/85, confirming the continuation of the trend.

The relative strength index (RSI) is biased in favor of buyers. Therefore, if the RSI continues to rise, it will confirm the continuation of the current uptrend.

On the other hand, a key support level for silver prices is found at $33.00. If it breaks below this level, the XAG/USD pair could drop to the 100-day simple moving average at $31.98 and then test the 200-day simple moving average at $31.30.