Silver Price Forecast: XAG/USD Jumps Above $108 As Trade War Fuels 'Sell America' Flows

By Christian Borjon Valencia of FX Street

Tuesday, January 27, 2026 4:04 PM EST

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Silver price trades choppy on Tuesday, after extending its gains on Monday, sponsored by heightened geopolitical tensions and the US trade war with its allies, reigniting the 'sell America' trade during the day. XAG/USD trades at $108.00 after bouncing off daily lows of $103.00, modestly up 0.05%

XAG/USD Price Forecast: Technical outlook

Silver’s technical picture shows a parabolic uptrend, but it seems that buyers are losing steam, following a run-up near $118.00 on Monday. The day ended at $108.52, forming a 'huge shooting star,' a bearish candle.

Worth noting that the Relative Strength Index (RSI), although showing signs that buyers remain in charge, diverges from price action. The latter had achieved a series of higher highs, contrary to the RSI, which registered lower highs. Therefore, a negative divergence looms and could pave the way for a retracement.

For a bullish continuation, traders must clear $110.00 to remain hopeful for higher prices. Otherwise, a pullback looms, and it could be exacerbated if Silver prices drop below the $100.00 mark.

In that event, the first support for XAG/USD would be the January 23 daily low at $96.14, followed by the January 21 swing low at $90.46.