Silver Price Analysis: XAG/USD tumbles below $32.00 as ‘double top’ looms

• Silver prices dropped on Wednesday, closing the session at $31.97.
• Price action suggests ‘double top’ looming, yet pending validation.
• Watch key levels: $31.00 psychological support, May 24 high at $30.61, and $30.00 for pattern confirmation.

Silver prices posted modest losses of 0.32% on Wednesday as US Treasury bond yields edged up, downward pressure on precious metals. Therefore, the XAG/USD retreated after hitting a six-day high of $32.29, and as the Asian session began, it traded at $31.97, almost flat.

XAG/USD Price Analysis: Technical outlook

Silver is upward based, but a ‘double top’ chart pattern seems to be forming on the daily chart. Momentum supports buyers, yet they’re losing steam as the Relative Strength Index (RSI) is flat near overbought conditions.

For confirmation of a ‘double top,’ the grey metal needs to drop below $30.00 a troy ounce. Nevertheless, on its way there, the XAG/USD needs to clear the $31.00 psychological level, followed by the May 24 high of $30.61, ahead of the $30.00 mark.

If XAG/USD buyers reclaim $32.00, that could pave the way to re-test the year-to-date (YTD) high of $32.51.

XAG/USD Price Action – Daily Chart