Silver continues its rally, approaching the upper band of a multi-month ascending channel near $59.60/59.90, after breaking out of a brief consolidation, Société Générale's FX analysts note.

Support at $56 key for short-term stability

"Silver defended the 50-DMA last month and gave a break beyond the upper limit of a brief consolidation resulting in extension of uptrend. It is now close to a multi-month ascending channel band near $59.60/59.90."

"The move is a bit stretched however signals of a meaningful pullback are not yet visible. The low achieved earlier this week at $56 is first support. If this is breached, there could be a risk of a short-term decline."