Silver has extended its breakout and is approaching the upper boundary of a steep ascending channel near $96.50–$97.00, with momentum indicators at multi-year highs despite clear signs of an overstretched trend, Société Générale's FX analysts note.

XAG/USD nears channel resistance at $97

"Silver broke out of its brief consolidation earlier this week, extending its upward move. It is now approaching the upper boundary of a steeper ascending channel at $96.50/$97.00. The daily MACD has surged to multi-year highs and remains well above the equilibrium line, underscoring strong momentum but also highlights an overstretched trend."

"Notably, Silver is nearly 45% above the 50-DMA; this is a historically extreme deviation and highlights the risk of near-term consolidation or corrective action. However, no clear signs of a meaningful pullback have emerged yet. The upper part of recent range at $82.70 could serve as initial support."