Silver price (XAG/USD) retreats on Wednesday after reaching a daily high of $95.56 after US President Donald Trump eased his tone in his Davos speech, saying that he is ready to negotiate Greenland with Denmark. At the time of writing, XAG/USD trades at $93.57, down over 1% after reaching a record high of $95.89 on Tuesday.

XAG/USD Price Forecast: Technical outlook

Silver’s daily chart suggests the grey metal is upward biased, but the parabolic move seems to have paused as the Relative Strength Index (RSI) exited from overbought territory and shows signs of negative divergence.

Despite this, bears are not out of the woods as they must clear the $90.00 figure before challenging the latest cycle low of $86.45 reached on January 15. In that outcome, Silver could dive towards the 20-day SMA at $80.63.

On the flip side, if XAG/USD is to extend its gains, buyers need to push prices above the record high of $95.89, followed by the $100.00 milestone.

XAG/USD Price Chart – Daily

(This story was corrected on January 21 at 17:11 to say in the first paragraph that the $95.56 price is a daily high, not an all-time high.)

XAU/USD Current price: $4,820

• US President Donald Trump’s speech in Davos brought some near-term relief.
• The US calendar will offer some first-tier, yet old data on Thursday.
• XAU/USD retreated sharply from all-time highs as the mood improved.

Spot Gold neared $4,890 on Wednesday, clinching yet another record high, as investors continued to seek refuge amid escalating geopolitical tensions triggered by United States (US) President Donald Trump. Trump delivered a speech at the World Economic Forum (WEF) and covered multiple subjects, from the US economy to how the country leads the world across all fronts.

The US Dollar (USD), however, managed to recover some of the ground lost throughout the first half of the day early in the American session, as President Trump noted the US does not want to use excessive force to obtain Greenland. As a result, XAU/USD shed some $70 bucks from its top, and trades around the $4,820 mark.

Uncertainty, however, remains in the background as President Trump did not refrain from praising the positive effects of widespread tariffs on the US economy. It’s clearly a tool he is willing to continue using.

Thursday will bring first-tier US data, although the figures were delayed by the government shutdown the country suffered last October. The American calendar includes a revision of the Q3 Gross Domestic Product (GDP), with annualized growth expected to be confirmed at 4.3%.

The country will also release the Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s (Fed) favorite inflation gauge. The data scheduled for release corresponds to October and November, a bit too old to be actually relevant.

Inflation is a key economic indicator in most cases, as it helps shape the central bank’s decisions. In this particular case, however, investors would rather wait for the announcement of Chair Jerome Powell’s replacement before changing bets on what the Fed would or would not do this year.

XAU/USD short-term technical outlook

The near-term picture for XAU/USD shows the pair is correcting overbought conditions, but also that the risk remains skewed to the upside. The 20-period Simple Moving Average (SMA) rises above the 100- and 200-period SMAs, keeping the bullish alignment alive. All three SMAs trend higher, and the price holds above them, sustaining an upward bias. The 20 SMA at $4,724.08 offers initial dynamic support, with the 100 SMA at $4,530.83 as a secondary floor. At the same time, the Momentum indicator remains well above its midline, although it is heading lower. The Relative Strength Index (RSI) indicator does the same, currently standing at 69.

In the daily chart, however, XAU/USD retains its bullish bias. The pair develops above all its moving averages, while the 20-day SMA climbs above the longer ones. Meanwhile, the RSI indicator retains its bullish slope around 76, while the Momentum indicator barely decelerated its advance well into overbought territory. The corrective decline may find buyers at around $4,800, a psychological support, with the speed of the subsequent recovery directly linked to the market’s sentiment.

(The technical analysis of this story was written with the help of an AI tool.)

Silver price (XAG/USD) turns sideways near the all-time high of 95.90 during the early European session on Wednesday. The white metal consolidates as investors await speech from United States (US) President Donald Trump in the World Economic Forum (WEF) at Davos, scheduled at 13:00 GMT.

Trump’s speech will be closely watched by financial market participants as it will indicate what other measures Washington has at disposal to extend the pressure on European Union (EU) members, who are opposing US intentions to acquire Greenland.

So far, US President Trump has announced 10% tariffs on several EU members and the United Kingdom (UK), which will become effective from February 1, and has threatened that he could raise them further.

The appeal of safe-haven assets, such as Silver, has strengthened, in an uncertain geopolitical environment. However, the appeal of US Dollar (USD) and US assets has diminished amid US-EU disputes. Technically, weak US Dollar makes the Silver price an attractive bet for investors.

In response, EU members have called Trump’s tariff threats as “undesirable” and warned of equal retaliatory measures. French President Emmanuel Macron has condemned Trump’s tariff tactic and has stressed the old continent to invoke “anti-coercion instrument”.

Silver price technical analysis

In the daily chart, XAG/USD trades at $94.92. Price holds well above the rising 20-Exponential Moving Average (EMA) at $82.96, keeping the bullish trend intact. The 20-day EMA’s upward slope reinforces positive momentum.

The 14-day Relative Strength Index (RSI) at 73.38 (overbought) underscores strength, though stretched readings could precede brief consolidation.

The distance above the moving average has widened, and trend extension prevails while pullbacks could stall near the rising mean. A close back below the average would weaken the setup, whereas continued acceptance above it would favor further upside. RSI has stayed elevated through recent sessions, confirming momentum; a moderation toward neutral would reset conditions without undermining the broader advance.

(The technical analysis of this story was written with the help of an AI tool.)

Gold price ( XAU/USD) climbs to near $4,775 during the early Asian trading hours on Wednesday. The precious metal extends the rally and is poised for another record high amid a time of political and economic uncertainty. The speech by US President Donald Trump at the World Economic Forum in Davos, Switzerland, will be in the spotlight later on Wednesday. 

Traders continue to pile into safe-haven assets amid tensions between the US and Europe over Greenland. US President Donald Trump over the weekend threatened to impose tariffs on eight European nations that oppose his plans to take control of Greenland. 

The BBC reported on Wednesday that the European Parliament is planning to suspend approval of the US trade deal agreed in July, according to sources close to its international trade committee. The suspension is scheduled to be announced in Strasbourg, France, on Wednesday. Escalation in tensions between the US and Europe could boost traditional safe-haven assets such as Gold in the near term. 

Traders push back their bets that the US Federal Reserve (Fed) would cut interest rates later this month after signs of an improving US labour market. Traders are now pricing in the next rate reduction coming in June, the month after Fed Chair Jerome Powell’s tenure ends, with another easing to follow in the fourth quarter. The view that the US central bank can keep interest rates higher for longer generally underpins the US Dollar (USD) and weighs on the non-interest-bearing assets like Gold.