Silver Price Forecasts: XAG/USD stalls below the $100.00 psychological level

LONDON (January 23) Silver (XAG/USD) hit a fresh all-time high at $99.39 earlier on Friday, before pulling back to levels around $98.25 at the time of writing. The precious metal has met resistance right ahead of the 100.00 psychological level, yet with downside attempts limited amid US Dollar's (USD) weakness.

The US Dollar Index is on track for its worst weekly performance since June, as Trump’s obsession with Greenland boosted tensions with the US's main trading partner, eroding the image of the US as a global leader as well as the status of the USD and a reserve currency.

Technical Analysis: XAG/USD remains bullish with $100.00 on sight

XAG/USD maintains its bullish tone intact with technical indicators pointing higher. The Moving Average Convergence Divergence (MACD) line stands above zero and has extended higher, suggesting strengthening bullish momentum, while the Relative Strength Index (RSI) remains at levels consistent with a firm bullish trend.

The pair found sellers at the 127.2% Fiboinacci extension of the January 8-12 rally, at the 99.50 area, which, together with the mentioned $100.00 level, is likely challenge bulls. Further up, the target is the 161.8% extension of the same range, at 106.38.

On the downside, immediate support is seen at the previous record high of $95.90, ahead of the 100-period SMA, now art $92.60, and the January 21 low, at $90.40.

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