Silver Price Analysis: XAG/USD aims to shift auction profile above $24.00

Silver price (XAG/USD) is failing to sustain above the round-level resistance of $24.00. The white metal is expected to remain sideways as trading activity will remain quiet amid the festive mood. The US Dollar Index (DXY) dropped sharply on Friday after a consolidation breakdown of the 103.47-104.57 range.

S&P500 remained choppy on Friday but ended the last trading session of CY2023 with a mild sell-off. The 10-year US Treasury yields benefitted from caution in the global market and climbed to 3.88%.

On a four-hour scale, the Silver price is displaying a volatility contraction chart pattern that displays lackluster performance but a breakout of the same results in heavy volume and wider ticks. The asset is displaying topsy-turvy moves in a range of 23.45-24.30 for the past two weeks.

Meanwhile, the 50-period Exponential Moving Average (EMA) at $23.77 is overlapping with the Silver price, which indicates a consolidation on a short-term basis.

While, the 200-period EMA at $22.75 is aiming higher, which indicates that the upside trend is still solid.

The Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which indicates directionless movement as investors await fresh impetus for a decisive move.

For an upside, the Silver price needs to surpass December 21 high at $24.30, which will be a breakout of the volatility contraction and will drive the asset towards April 22 high at $24.67 followed by the psychological resistance at $25.00.

On the flip side, a break below December 16 low at $22.56 will drag the asset toward November 15 high at $22.25. A slippage below the latter will expose the asset for more downside toward November 24 high at $21.68.

Silver four-hour chart