Silver Price Forecast: XAG/USD eases from 14-year peak; fails ahead of $41.00 mark

• Silver touches a fresh 14-year high on Wednesday, though it lacks any follow-through buying.
• A slightly overbought daily RSI prompts the XAG/USD bulls to take some profits off the table.
• The broader technical setup backs the case for the emergence of dip-buying at lower levels.

Silver (XAG/USD) retreats slightly from the vicinity of the $41.00 mark, or a fresh 14-year high touched during the Asian session earlier this Wednesday. The white metal currently trades around the $40.70 region, down nearly 0.50% for the day, though any meaningful corrective slide seems elusive.

The daily Relative Strength Index (RSI) has been flashing slightly overbought conditions, which, in turn, prompts some profit-taking around the XAG/USD. That said, this week's move beyond the previous year-to-date high and a subsequent strength beyond $40.00 psychological mark was seen as a key trigger for bullish traders, suggesting that any further pullback could be seen as a buying opportunity.

However, weakness back below the $40.00 round figure could drag the XAG/USD to the $39.50 support zone. The latter should act as a strong near-term base, which, if broken decisively, could pave the way for deeper losses. The white metal might then accelerate the fall towards the $39.00 mark and eventually drop to the $38.50-$38.40 region en route to the next relevant support near the $38.00 round figure.

On the flip side, the XAG/USD bulls might now wait for sustained strength and acceptance above the $41.00 mark before positioning for additional gains towards the $41.50 area. Some follow-through buying would set the stage for a move beyond the $42.00 round figure, towards the next relevant hurdle near the $42.65 region.

Silver daily chart