On the first day of the new week, Silver has attracted some dip-buying and has climbed steadily back to the $25.00 psychological mark during the first half of the European session. The white metal is currently positioned just below a nearly one-year high touched on Friday and seems ready to extend its recent upward trajectory witnessed over the past month or so.
Last week's sustained breakout through the $24.30-$24.40 strong horizontal barrier was seen as a fresh trigger for bullish traders. Moreover, the emergence of fresh buying ahead of the said resistance breakpoint now turned support, adds credence to the positive outlook. However, traders should be cautious, as the Relative Strength Index (RSI) on the daily chart is flashing overbought conditions, which warrants some caution before positioning for any further appreciation.
Traders are advised to wait for some near-term consolidation or a modest pullback before positioning for a fresh leg up. Nonetheless, the XAG/USD seems poised to surpass the $25.10-$25.15 area and climb further towards the $25.35-$25.40 region. The momentum could get extended towards the $26.00 mark en route to the next relevant hurdle near the $26.20 area, the $26.40-$26.50 zone, and the 2022 high, just ahead of the $27.00 mark. On the other hand, any meaningful pullback is likely to attract fresh buyers and remain limited near the $24.40-$24.30 resistance-turned-support. The said area should now act as a pivotal point, which if broken decisively might prompt some technical selling. The XAG/USD might then turn vulnerable to weaken below the $24.00 mark and test the $23.60-$23.55 support area before eventually dropping to the $23.15 zone en route to the $23.00 round figure.
