Silver at All-Time Highs: Can XAG/USD Sustain Momentum Beyond $61.00?

Silver continues its impressive rally, hitting fresh record levels as traders eye further upside potential. With the ongoing USD weakness (relevant for conversion contexts like 143 USD to AUD), the precious metal has benefited from favorable macro conditions. The white metal punched through the key $58.80-$58.85 resistance zone overnight, establishing a clear bullish breakout that has attracted considerable buying interest.

Technical Setup Points to Further Gains, But Caution Is Warranted

The broader technical landscape supports the case for continued appreciation. However, the 4-hour and daily timeframe indicators are displaying overextension signals, particularly the Relative Strength Index, which has reached overbought territory. This suggests that while the structural bias remains tilted toward higher prices, traders should exercise restraint before chasing the market aggressively at current levels.

Market participants are now consolidating positions near the psychological $61.00 mark, with price action oscillating in a tight band during Asian trading hours. This holding pattern could be interpreted as a pause before the next directorate move, rather than a reversal signal.

Support Levels and Risk Management

A meaningful pullback remains a realistic scenario in the near term. Should XAG/USD retreat, the $60.20-$60.30 zone will likely attract fresh demand from value hunters. Below this level, the $60.00 round number serves as a psychological support floor.

If selling pressure intensifies and breaks through the $60.00 handle, the focus would shift lower toward the $58.80-$58.85 region—the prior resistance that now functions as crucial support. A decisive break below this pivotal zone could trigger further liquidation and prompt a more substantial retracement.

Upside Scenario Remains in Play

On the other hand, a convincing push above $61.00 would reinforce the constructive outlook and potentially set the stage for a continued advance from the lows near mid-$45.00s. Momentum traders view this as confirmation that the latest leg higher has sufficient fuel to extend further.

The current environment favors patient traders willing to wait for a better entry point rather than chasing existing highs. A modest corrective move followed by a bounce from key support levels offers a more attractive risk-reward opportunity for positioning bullish exposure in silver.