Silver (XAG/USD) extended its powerful rally during Monday’s Asian session, surging to a fresh all-time high near $57.60. The move followed reports of an outage on the Comex, which CME Group attributed to a “cooling system failure,” briefly disrupting trading and adding fuel to the metal’s upward momentum.
Expectations of a US Federal Reserve (Fed) rate cut in December are also supporting the white metal, as lower interest rates reduce the opportunity cost of holding non-yielding assets like silver.
Chart analysis XAG/USD
On the daily chart, XAG/USD trades around $57.49, significantly above the 100-day EMA at $45.60, reflecting a firmly entrenched bullish trend. The upward-sloping average reinforces the broader uptrend and should act as dynamic support on any meaningful pullback.
RSI has climbed to 73.47, signaling overbought conditions and raising the risk of near-term consolidation. Initial downside support aligns with the middle Bollinger Band near $51.29.
Price action remains above the upper Bollinger Band at $56.37, highlighting strong bullish pressure and an extended advance. The widening bands point to increased volatility, and a daily close back below the upper band could trigger a move toward the mid-band. A deeper correction would expose the 100-day EMA at $45.60.
While the broader trend remains firmly bullish, the overbought backdrop suggests the next upside leg may require a period of consolidation before resuming higher.
