XAG/USD rises to record high above $57.50, overbought RSI may limit gains
- Silver price jumps to an all-time high around $57.60 in Monday’s Asian session.
- The white metal keeps the bullish view, but the overbought RSI condition might cap its upside.
- The initial support level is located near the Bollinger middle band of $51.29.
Silver price (XAG/USD) climbs to a fresh record high near $57.60 during the Asian trading hours on Monday. Silver has surged following the report about an outage on the Comex due to what the exchange operator CME calls a “cooling system failure.”
Furthermore, the prospect of a US Federal Reserve (Fed) interest rate cut in the December policy meeting could underpin the white metal in the near term. Lower interest rates could reduce the opportunity cost of holding Silver, supporting the non-yielding precious metal.
Technical Analysis:
In the daily chart, XAG/USD trades at $57.49. Price extends well above the 100-day EMA at $45.60, underscoring a firmly bullish trend. The average slopes higher, reinforcing the uptrend and offering a cushion on setbacks. RSI at 73.47 is overbought, signaling stretched momentum that could precede consolidation. Initial pullback support stands at the Bollinger middle band near $51.29.
Price sits above the upper Bollinger Band at $56.37, indicating strong bullish pressure and a stretched advance. The bands have widened, reflecting rising volatility and momentum. A daily close back below the upper band would open room toward the mid-band, while deeper losses could target the 100-day EMA at $45.60. Despite the strong trend, overbought signals suggest any upside extension could be tempered by a period of digestion before the next leg higher.
