Silver prices (XAG/USD) climbed to a fresh record high near $57.60 during Monday’s Asian trading hours. This surge followed reports of an outage on Comex, attributed by exchange operator CME to a “cooling system failure.” Furthermore, the prospect of a US Federal Reserve (Fed) interest rate cut at its December policy meeting could provide near-term support for the white metal, as lower rates reduce the opportunity cost of holding non-yielding precious metals like Silver.
Technical Analysis: On the daily chart, XAG/USD is currently trading at $57.49, significantly above its 100-day EMA of $45.60, which highlights a firmly bullish trend. The upward-sloping average reinforces this uptrend and offers a potential support level during pullbacks. However, the Relative Strength Index (RSI) at 73.47 is overbought, suggesting stretched momentum that could lead to consolidation. Initial support on a pullback is identified at the Bollinger middle band, around $51.29.
The price’s position above the upper Bollinger Band at $56.37 indicates robust bullish pressure and an extended advance. The widening Bollinger Bands reflect increased volatility and momentum. A daily close back below the upper band would open the path towards the mid-band, while more significant declines could target the 100-day EMA at $45.60. Despite the strong underlying trend, the overbought signals suggest that any further upside might be limited by a period of consolidation before the next leg higher.
