Silver Price Forecast: XAG/USD climbs beyond $43.00, highest since September 2011

• Silver challenges a multi-month-old ascending channel resistance at the start of a new week.

• A slightly overbought RSI on the daily chart warrants caution before placing fresh bullish bets.

• Any corrective slide below $43.00 could be seen as a buying opportunity and remain limited.

Silver (XAG/USD) builds on Friday's breakout momentum above the $43.00 mark and touches a fresh high since September 2011 at the start of a new week. The white metal trades around the $43.25 area during the Asian session, up 0.35% for the day, flirting with the top end of an ascending channel extending from the April swing low.

The aforementioned channel points to a well-established uptrend and backs the case for a further near-term appreciating move for the XAG/USD. That said, the Relative Strength Index (RSI) on the daily chart is flashing slightly overbought conditions and makes it prudent to wait for some near-term consolidation or a modest pullback before placing fresh bullish bets.

Any corrective slide below the $43.00 round figure, however, is more likely to attract fresh buyers near the $42.55 region. This, in turn, should help limit the downside for the XAG/USD near the $42.20-$42.15 region. This is closely followed by the $42.00 mark, below which the commodity could slide to the $41.65 area before eventually dropping to test sub-$41.00 levels.

On the flip side, acceptance above the ascending channel resistance will be seen as a fresh trigger for bullish traders and allow the XAG/USD to test the September 2011 swing high, around the $43.40 region. The positive momentum could extend further towards reclaiming the $44.00 round figure en route to the August 2011 peak, around the $44.25 region.

Silver daily chart