• Silver Price Analysis: XAG/USD rallies hard to test Sept 2013 highs near $24.50

    • Silver hits fresh 6.5-year highs amid gold’s rally.
    • Technical set up favors bulls, but signs of exhaustion evident.
    • XAG bulls gather pace towards 25.00 in the near-term.

    After a brief upside consolidation seen into the weekly closing, Silver (XAU/USD) started out a fresh week on Monday with a bang, rising nearly $1.50 over the last hours.

    The latest spike in the white metal is mainly due to the rally in gold, as the traditional safe-haven clinched fresh record high above $1930 levels.

    On the hourly chart, the price broke out of the last week’s descending triangle pattern and almost reached the pattern target above $24.

    The bulls now take a breather, as the hourly Relative Strength Index (RSI) has risen sharply in the overbought territory.

    The next stop for the buyers looks like the September 2013 highs at $24.49 en route the 25 level.

    To the downside, any corrective slides could test the pattern resistance-turned-support at 22.83, where the hourly 21-Simple Moving Average (HMA) coincides.

    Further south, the horizontal pattern support at 22.41 could offer some respite to the bulls.

    However, the path of least resistance appears to the upside in the near-term.

    Silver: Hourly chart

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