Silver Rate Forecast: XAG/USD Breaks New Peak, Momentum Eyes $61+ Territory

White metal surges to fresh record highs, but traders should watch for a near-term cooldown. - Technical structure remains constructive, yet overbought signals suggest caution before chasing further upside. - Support zones offer strategic entry points for those betting on continued strength.

Silver (XAG/USD) is currently trading in consolidation mode during Asia’s session, hovering near the $61.00 milestone that was cracked this Wednesday. The overnight jump through the monthly barrier around $58.80-$58.85 delivered exactly what bulls were hoping for, clearing a key technical hurdle and establishing the white metal’s strong directional bias.

However, here’s where things get interesting: the 4-hour and daily RSI readings are screaming overbought. This typically means momentum traders are hitting pause before jumping in, as the risk-reward setup becomes less favorable for new long positions. The prudent move? Sit tight and wait for either a minor pullback or some sideways consolidation to reset these extremes.

Where to Watch for Support:

If XAG/USD pulls back, the $60.30-$60.20 zone represents the first line of defense. A solid hold there would likely attract fresh buying interest. Should the decline deepen further, the psychological $60.00 level would kick in as secondary support and probably catch dip-buyers as well.

A more meaningful breakdown below $60.00, however, shifts the picture. That scenario could trigger stop-losses and drag silver down toward the $58.80-$58.85 breakout zone—the very level that just propelled prices higher. If this support fails, further downside risk cannot be ruled out.

Bullish Case Intact:

On the upside, a convincing break beyond $61.00 would seal the near-term bullish narrative and potentially target the broader uptrend extending from the mid-$45 lows seen in late October. This rally structure remains intact as long as the key support levels hold.

The silver rate forecast hinges on whether consolidation below resistance can shake out weak hands before the next leg higher, or if overbought conditions trigger a meaningful correction first.