Silver prices retreated from their record high, with a key technical indicator showing that a six-session rally pushed the metal into overbought territory. Gold also fell slightly. Silver was trading at around $57.45 an ounce, more than $1 below the all-time high it hit in the previous session. Traders bet on continued scarcity of supplies and expectations of a new cut in interest rates in the United States, which is a supportive factor for precious metals that do not generate a return. But the 14-day RSI suggests that the recent speculative fervor has quickly crossed the line. A reading above 70 points indicates an excessive increase in momentum. “We have now crossed the limits of rational momentum,” Daniel Ghaly, senior commodities analyst at TD Securities, wrote in a note. “Demand expectations have softened across all categories, leaving investment demand as the primary driver for now,” he said, citing weak physical trading in London’s over-the-counter market. Also read: Who caused the record price of silver to rise? Ask solar: Bets on scarcity of supply support prices. Silver’s rally, which had risen more than 8% in the previous two sessions, was fueled by bets on continued scarcity of supplies. Since record volumes of the metal poured into London in October to ease a historic crisis, other trading centers have come under pressure, with stocks linked to the warehouses of the Shanghai Futures Exchange hitting their lowest levels in a decade. Both silver and gold also received support from rising expectations that the Federal Reserve will make another rate cut next week. Traders have priced in the almost certain possibility of a quarter point cut at the Fed’s final meeting this year. Silver was down 1% at $57.4245 an ounce by 08:28 in Singapore. Gold fell 0.2%. The Bloomberg Dollar Spot Index rose slightly, while palladium and platinum both fell.