Silver Price: XAG/USD jumps to record high past $89.00 as bullish momentum fades

NEW YORK (January 13) Silver price (XAG/USD) registers gain of 2% on Tuesday after reaching an all time high of 89.11 as the Greenback recovers amid a soft inflation report in the United States. At the time of writing, XAG/USD trades at $86.91 after bouncing off daily lows of $83.45.

XAG/USD Price Forecast: Technical outlook

Silver’s uptrend remains intact as buyers pushed the grey metal to record high near the $90.00 figure. Although price action reached successive series of higher highs and higher lows, it seems that the move is overextended.

There are signs of divergence between price action and the Relative Strength Index (RSI), which hints that buyers are losing momentum.

Despite this, the path of least resistance is tilted upwards. XAG/USD first resistance will be the $87.00 figure followed by the $88.00 mark and the all-timer high at $89.11.

On the flip side, XAG/USD first support would be the January 12 high at $86.23, followed by the $85.50 area. A breach of the latter will expose the $80.00 a troy ounce barrier.

FXStreet