Silver Price Forecast: XAG/USD drops near 4% weekly on strong US Dollar

• XAG/USD slips to $31.13, with downside risks growing
• Silver fails to hold above $33.00, triggering consolidation and selling pressure.
• Price tests 100-day SMA at $31.20; next key support at 50-day SMA of $30.89.
• Break below $30.89 could expose 200-day SMA at $30.47 and January low of $29.70.

Silver ended the week on a lower note, down almost 4%, as traders booked profits amid US recession jitters following the release of crucial US data. At the time of writing, the XAG/USD trades at $31.13, down 0.32%.

XAG/USD Price Forecast: Technical outlook

The grey metal had shown signs of consolidation after failing to decisively clear the $33.00 on a daily closing basis, which could’ve exacerbated a rally towards the $34.00 figure. Instead, XAG/USD spot price cleared the 100-day Simple Moving Average (SMA) at $31.20, opening the door to test the 50-day SMA at $30.89.