Will Silver Prices Continue Climbing? XAG/USD Hits Fresh Peaks but Faces Technical Hurdles

Silver has reached remarkable heights, touching all-time records above $61.00 during Wednesday’s session. But is the price of silver going up sustainably, or are we seeing a temporary peak? The answer lies in the technical framework.

The Rally: Breaking Key Barriers

The white metal’s recent strength came from breaking through a critical monthly resistance zone around $58.80-$58.85. This breakout acted as a catalyst for XAG/USD bulls, propelling prices toward the $61.00 milestone. From a technical standpoint, this move represents a significant achievement for long-positioned traders.

Price Outlook: Bullish but Cautious

Technicians monitoring the 4-hour and daily charts note that momentum indicators—specifically the Relative Strength Index (RSI)—are signaling overbought territory. This creates a mixed picture: while the broader technical structure suggests upside bias, the overbought reading suggests caution is warranted before aggressively chasing further gains.

Key Levels to Watch

For traders asking whether silver prices will continue climbing, the following pivots matter:

Upside targets: A sustained move above the $61.00 handle would validate the bullish narrative and potentially encourage fresh buying momentum.

Support zones: Dips toward $60.30-$60.20 represent the first line of defense. Should prices hold here, accumulation at the psychological $60.00 mark becomes viable.

Risk level: A breakdown below $60.00 could trigger profit-taking, pulling XAG/USD back toward the $58.80-$58.85 breakout zone—a critical level that, if violated decisively, opens the door to sharper declines.

Strategy Perspective

Rather than chasing highs in overbought conditions, prudent traders might wait for minor pullbacks to add positions. Any corrective dip into the support zone mentioned above could present attractive buying opportunities, keeping the longer-term uptrend intact.

The trajectory from mid-$45 lows to current highs demonstrates substantial underlying strength in silver demand, but near-term consolidation appears necessary before the next leg higher.