Silver Price Forecast: XAG/USD refreshes record high, looks to build on move beyond $61.00

• Silver builds on the overnight strong gains and touches a fresh all-time high on Wednesday.

• The constructive technical setup favors bullish traders and backs the case for further gains.

• Any meaningful corrective slide could be seen as a buying opportunity and remain limited.

Silver (XAG/USD) enters a bullish consolidation phase during the Asian session and oscillates in a narrow range near the all-time peak, around the $61.00 neighborhood, touched this Wednesday. Meanwhile, the broader technical setup suggests that the path of least resistance for the white metal remains to the upside.

The overnight breakout through the monthly trading range hurdle, around the $58.80-$58.85 region, was seen as a fresh trigger for the XAG/USD bulls. However, the Relative Strength Index (RSI) is flashing overbought conditions on 4-hour/daily charts, which, in turn, is holding back traders from placing fresh bullish bets. Hence, it will be prudent to wait for some near-term consolidation or a modest pullback before positioning for a further appreciating move.

Meanwhile, any corrective slide below the $60.30-$60.20 immediate support could attract fresh buyers and find decent support near the $60.00 psychological mark. A convincing break below the said handle, however, might prompt some long-unwinding and drag the XAG/USD towards the trading range resistance breakpoint, around the $58.80-$58.85 region. The latter should act as a key pivotal point, which, if broken, could pave the way for further losses.

On the flip side, momentum above the $61.00 mark will reaffirm the near-term constructive outlook and set the stage for an extension of the XAG/USD's recent strong move up from the vicinity of mid-$45.00s, or late October swing low.

Silver 4-hour chart