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Silver (XAG/USD) rally extends for the second straight day on Monday, with buyers pushing prices to a new record high of $86.23 a troy ounce, posting daily gains of nearly 7.50%, courtesy of the US Department of Justice, which has indicted the Federal Reserve (Fed) Chair Jerome Powell, over the renovations of the Fed’s buildings. At the time of writing, XAG/USD trades at $85.90.

XAG/USD Price Forecast: Technical outlook
 

Silver’s daily chart shows a parabolic move, further confirmed by the Relative Strength Index (RSI) turning overbought. Nevertheless, due to the strength of the uptrend, RSI’s most extreme overbought level would be the 80 threshold.

If XAG/USD clears the $86.00 level, the next immediate resistance would be $86.50. A breach of the latter would expose $87.00.

Conversely, if Silver slides below $85.50, the next support would be $85.00, followed by the latest cycle high hit on December 29 at $83.75.

XAG/USD Price Chart – Daily
 

Silver daily chart

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