Silver Price Forecast: XAG/USD bulls retain control near record high, above $69.00

LONDON (December 22) Silver (XAG/USD) prolongs its recent well-established uptrend and climbs to a fresh record high, around the $69.45 area, during the Asian session. Moreover, the broader technical setup seems tilted firmly in favor of bullish traders and suggests that the path of least resistance for the white metal remains to the upside.

Against the backdrop of repeated rebounds from the 100-hour Simple Moving Average (SMA) over the past two weeks or so, last week's breakout through the $66.40-$66.50 horizontal resistance was seen as a key trigger for the XAG/USD bulls. A subsequent strength beyond the $67.20-$67.25 region last Friday validates the near-term positive outlook. The white metal currently trades around the $69.25 area, up 3% for the day.

Meanwhile, the Relative Strength Index (RSI) on hourly/daily charts sits above the 70 mark, signaling stretched conditions that could prompt a pause. The 100-hour SMA climbs to $65.57, with price holding well above it, keeping the near-term trend biased upward. Moreover, the Moving Average Convergence Divergence (MACD) stands at 0.19 in positive territory and continues to rise, suggesting strengthening bullish momentum.

Buyers would retain control while XAG/USD remains above the rising 100-period SMA, and a pullback toward $65.57 would meet dynamic support. The MACD staying positive supports the bullish tone, while an overbought RSI suggests consolidation could precede further gains. A decisive continuation above intraday highs could extend the advance, whereas failure to hold above the average would open room for a deeper retracement.

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