• Silver eases from record highs after refreshing a new all-time peak near $54.86 on Thursday.
• XAG/USD slips over 1.8% on Friday as traders book partial profits amid choppy price action.
• Momentum indicators cool off, as RSI retreats and MACD signals a short-term pause in upside momentum.

Silver (XAG/USD) is taking a breather on Friday, snapping a two-day winning streak after refreshing a new all-time high near $54.86 on Thursday. At the time of writing, the white metal is trading around $53.20, down over 1.80% on the day and easing from the intraday high of $53.68.

Price action remains choppy as traders book partial profits, though safe-haven and institutional demand, along with the ongoing physical squeeze in the London market, continues to keep downside risks limited.

From a technical perspective, the broader uptrend remains firmly intact, characterized by a series of higher highs and higher lows on a 4-hour chart. Bulls are defending the $53.00 psychological mark, which closely aligns with the 21-period Simple Moving Average (SMA) at $52.93. A decisive close below this level could trigger a deeper correction, with strong support emerging near the $51.00-$51.20 zone, reinforced by the 50-SMA at $51.18. That area is likely to attract fresh buying interest, keeping the broader bullish structure intact.

Momentum indicators are showing mild signs of fatigue following the overextended rally. The Relative Strength Index (RSI) has eased to around 56, showing signs of waning momentum and confirming a mild bearish divergence relative to recent price highs. This suggests that Silver could enter a consolidation phase in the near term before attempting another leg higher.

Meanwhile, the Moving Average Convergence Divergence (MACD) indicator is showing signs of a bearish crossover, with the MACD line slipping below the signal line and the histogram turning negative. The crossover indicates a potential short-term loss of bullish momentum, reinforcing the likelihood of a temporary pause or minor pullback before the broader uptrend resumes.

That said, the Average Directional Index (ADX) hovers near 31, signaling that the prevailing uptrend remains strong. As long as Silver holds above the $53.00 handle, the path of least resistance stays to the upside. A break above $54.86 would reaffirm the bullish bias and pave the way toward the next resistances at $55.50 and $56.00.