Silver Price Forecast: XAG/USD extends record-setting rally to $99.00 amid fresh breakout

• Silver gains strong follow-through positive traction for the second straight day on Friday.
• A breakout through a one-week-old ascending channel backs the case for further gains.
• Overbought conditions on the short-term chart warrant some caution for bullish traders.

Silver (XAG/USD) continues scaling new all-time highs for the second consecutive day and climbs to the $99.00 mark during the Asian session on Friday. The parabolic rise seems rather unaffected by easing US-EU tensions over Greenland and extremely overstretched conditions, suggesting that the path of least resistance for the white metal remains to the upside.

The ascending channel from $86.67 underpins the uptrend, with its upper boundary at $97.22 now breached; a sustained hold above this barrier would preserve the breakout bias. The Moving Average Convergence Divergence (MACD) stands in positive territory and continues to rise, suggesting strengthening upside momentum. Moreover, the 200-period Simple Moving Average (SMA) on the 4-hour chart slopes higher at $91.47, and the XAG/USD holds above it, keeping the intraday tone bullish.

However, the Relative Strength Index (RSI) at 76.98 is overbought and could temper immediate gains. Pullbacks would be cushioned by the rising 200-period SMA at $91.47, while deeper setbacks meet the ascending channel’s lower boundary at $90.16. The MACD’s positive stance above zero reinforces buyers’ control. RSI moderation from overbought would aid consolidation.

Failure to keep above $97.22 would risk a return into the channel, whereas continued acceptance above that line would leave the path open for further extension.

(The technical analysis of this story was written with the help of an AI tool.)

XAG/USD 1-hour chart