White Metal Rally Extends: XAG/USD Reaches New Heights, Eyes Sustained Push Above $61.00

Silver touches record highs amid constructive technical backdrop - Overbought signals warrant caution before new bullish positions - Support levels provide opportunities for dip-buyers

White metal prices are consolidating at fresh record levels near $61.00 following an impressive overnight surge. The XAG/USD has successfully cleared the monthly resistance band around $58.80-$58.85, establishing a pivotal breakout that has energized the bullish camp. However, technical indicators are flashing warning signs that merit trader consideration.

The rally has pushed the Relative Strength Index into overbought territory on both 4-hour and daily timeframes, suggesting the move has become stretched in the near term. This extended condition is deterring fresh aggressive buying, signaling prudent traders should await a consolidation phase or modest retracement before initiating additional long positions.

Consolidation Phase Creates Tactical Opportunity

The directional bias for XAG/USD tilts upside, yet the immediate task involves digesting recent gains. A pullback toward $60.30-$60.20 would represent a natural support zone and could attract fresh dip-buyers. Below this area, the psychological $60.00 level offers secondary support.

A deeper decline breaking cleanly through $60.00 would challenge the recent breakout narrative and potentially force position exits. This scenario could see XAG/USD retrace toward the previous resistance band at $58.80-$58.85, which now functions as a critical pivot point. Sustained weakness below this band could signal mean reversion and dampen the near-term constructive setup.

Path Higher Remains Intact

Above $61.00, momentum could accelerate and validate the emerging uptrend. A break beyond record levels would suggest the rally from mid-$45 levels in late October still has room to extend. This would cement the recent strength and keep silver on a constructive trajectory for further gains.