Silver (XAGUSD) Price Forecast: Nears 2011 Peak as Momentum is Sustained

Trend Strengthens with New Breakout

Silver extended gains on Monday, reaching a new trend high of $48.77. Although the day’s range was relatively narrow, a daily close above Friday’s high and the prior trend high of $48.38 will confirm strength in the ongoing bull trend. The breakout above previously identified resistance reinforces the view that buyers remain in control, setting up a potential test of resistance at the 2011 peak at $49.81 — a major long-term resistance level.

Momentum and Overbought Conditions

While silver appears poised to challenge that historic peak, traders should note that upside momentum has accelerated sharply, with price advancing $11.81, or 32%, from the $36.96 swing low in under seven weeks. The relative strength index (RSI) continues to push into deeply overbought territory; matching levels last reached in April 2023. Although this may not immediately signal a reversal, it underscores growing risk that buyers could soon face exhaustion if momentum wanes.

Acceleration in the Uptrend Structure

The slope of silver’s uptrend reflects this intensifying momentum. An initial trendline connecting the February 2024 swing low gave way to a steeper line drawn from April 2025, and most recently, a short-term trend channel has defined the accelerated phase of the rally.

A bull breakout above the top of that channel occurred last week, and the upper boundary has since been successfully retested as support across five consecutive sessions. That confirmation adds to the bullish case in the short term — yet it also emphasizes how stretched the rally has become relative to its prior trajectory.

Potential for a Controlled Pullback

If weakness begins to appear, the first support area sits around $46.36, established by dynamic support of the 10-Day average. A decisive breakdown below those levels would likely trigger a deeper pullback toward the 20-Day moving average at $44.26. Still, if silver maintains support above the former breakout line, buyers retain the upper hand. The broader trend remains bullish, but the current environment is ripe for a period of consolidation or correction before any sustained move through $49.81 can be confirmed.

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