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Silver (XAG/USD) continues to rise parabolically, up more than 5% on Tuesday, trading above the $80.00 threshold per troy ounce despite rising US Treasury yields and a strong US Dollar.

Geopolitics continued to drive the precious metals segment higher. This, along with increasing bets that the Federal Reserve (Fed) will resume its easing cycle during the year, sparked by weakness in the jobs market, pushing the grey’s metal to a new year-to-date high of $81.44.

XAG/USD Price Analysis: Technical outlook

Silver’s technical picture indicates that bulls continue to control the narrative, while the Relative Strength Index (RSI) turns overbought. Nevertheless, as the RSI crosses the 70 level, it’s worth noting that due to the strength of the move, XAG/USD is not as overbought as shown by the RSI.

If the RSI crosses above 80, then Silver could be considered overbought, but so far the trend seems to be overextended, subject to a retracement. However, the path of least resistance is upwards.

The first key resistance is the day’s high of $81.44. Once surpassed, the next stop would be the $82.00 mark ahead of the all-time high at $85.87. Conversely, if XAG/USD dives below $80.00, this could exacerbate a pullback, with the January 5 high at $77.88 being the first support level. Once cleared, the next stop would be $75.00.

XAG/USD Price Chart – Daily

(Click on image to enlarge)

Silver daily chart

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