XAG/USD Hits New Peak Near $61.00 - Technical Analysis Points to Further Upside Potential

2025-12-24 21:16:02

Abstract generation in progress

Silver continues its impressive rally, reaching unprecedented levels as the white metal recently kissed the $61.00 mark during Asian trading hours. The momentum behind this move remains intact, with technical indicators suggesting bullish traders maintain the upper hand in near-term price action.

Breakout Signals Strength

The overnight surge through the monthly resistance zone around $58.80-$58.85 has ignited fresh buying interest among investors positioned for higher prices. This breakthrough represents a pivotal moment for the XAG/USD pair, as it clears a key technical hurdle and opens the door for extended appreciation.

Mixed Signals in the Short Term

While the directional bias favors the bulls, the Relative Strength Index (RSI) on both the 4-hour and daily timeframes is flashing warning signs of stretched conditions. This overbought reading suggests that immediate pullbacks could emerge, despite the overall positive trajectory. Prudent traders may want to observe a period of consolidation or witness a modest retracement before establishing fresh bullish positions.

Support and Resistance Framework

The first area of concern for bulls sits between $60.30-$60.20, where any dip could attract fresh accumulation interest. Should the white metal stabilize above the psychological $60.00 level, upside momentum should resume toward the all-time highs.

Conversely, a decisive break below $60.00 would shift focus to the previous breakpoint near $58.80-$58.85, acting as the critical support floor. A penetration below this zone risks triggering long-position liquidation and could accelerate weakness substantially.

Outlook

The near-term technical setup remains constructive for XAG/USD bulls, with dips representing potential buying opportunities rather than trend reversals. Confirmation above the $61.00 level would validate the strength and potentially pave the way for continuation from the mid-$45.00s lows established in late October.

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